BNM: Demand for insurance, takaful to slow down
Topik: Bank Negara Malaysia, The Edge Daily on May 25th, 2009 Comments Off
Source: The Edge Daily, 25th May 2009
Bank Negara Malaysia (BNM) expects Malaysian insurance and takaful sector to be affected by potential lower demand for protection and related products in a highly competitive industry.
The expected decline in vehicle sales would impact the motor insurance and takaful business which accounted for 45% of gross insurance premiums last year, it said in its Financial Stability and Payment Systems Report 2008.
“Premiums are also likely to be affected to an increase in surrender rates and lower sums insured,” it said, adding policyholders would want to reduce costs.
It cautioned claims were expected to intensify due to higher incidences of theft and fraud and less regular maintenance.
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