Personal Accident and Health Insurance in Malaysia Key Trends and Opportunities to 2020' report provides in-depth market analysis, information and insights into the Malaysian personal accident and health insurance segment.

1. High Healthcare Cost boosting Medical Insurance
Sector in Malaysia: Ken Research

2. Ken research announced its recent report on, “Personal Accident and
Health Insurance in Malaysia, Key Trends and Opportunities to 2020 “
Report provides a detailed outlook by product category and a comparison
of the Malaysian insurance industry with its regional counterparts. It
provides key performance indicators such as written premium, incurred
loss, loss ratio, commissions and expenses, combined ratio, total assets,
total investment income and retentions during the review period (2011-
2015) and forecast period (2015-2020).

3. The report also analyses distribution channels operating in the segment,
gives a comprehensive overview of the Malaysian economy and
demographics, and provides detailed information on the competitive
landscape in the country. The report brings together research, modelling
and analysis expertise, giving insurers access to information on segment
dynamics and competitive advantages, and profiles of insurers operating in
the country. The report also includes details of insurance regulations, and
recent changes in the regulatory structure.
General insurance is typically defined as any insurance that is not
determined to be life insurance. General insurance or non-life insurance
policies include personal accident and health insurance. The Malaysian
personal accident and health insurance segment accounted for a 4.2% of the
industry's direct written premium in 2015. The share of the insurance
industry’s written premiums in 2012 was the lowest share of all the
segments. Changing lifestyle patterns and the prevalence of diseases such as
diabetes, respiratory disorders and other critical illnesses led to a rise in
healthcare expenditure, which is generating a demand for health insurance.

4. The threat of cancer, diabetes and respiratory disorders has encouraged
personal accident and health insurers to expand their product portfolios.
Rising levels of healthcare expenditure, increasing employment rates and
industrial growth drove growth in the segment during the review period.
The Malaysian healthcare system comprises public and private healthcare
services and the aging population is expected to drive the segment over
the forecast period, due to an increase in demand for cover. The personal
accident and health segment is moderately concentrated, with the 10
leading insurers collectively accounting for more than sixty percent of
premiums in 2016. The costs associated with private healthcare exclude
participation from lower income demographics. However, with industrial
growth, positive employment opportunities and rising GDP, the nation’s
middle class population is expected to increase over the forecast period
and drive growth in the personal accident and health segment.

5. Rising consumer healthcare expenditure and limitations of public healthcare
system will provide new areas of growth. Changing lifestyle patterns and an
increase in the prevalence of a number of common diseases led to a rise in
consumer expenditure on private health insurance during the review period,
with an increasing proportion of the country’s population opting for voluntary
medical policies, some of which are provided by employers. The main reason
behind the rise in healthcare expenditure can be attributed to the fact that
consumers are inclined to avail private healthcare in order to receive a better
quality service. Private healthcare is therefore gaining in popularity, despite
the guarantee of care under the government’s public healthcare system. The
government’s healthcare initiatives ensure health insurance for the foreign
working population. However, the insufficient number of public healthcare
centres and technological limitations encourage foreign workers to purchase
private health insurance.
Rising life expectancy and aging population will, drive growth Increasing life
expectancy was a key driver of growth in the personal accident and health
segment during the review period.

6. Life expectancy is used to calculate the premium to be paid by
policyholders when purchasing a life and personal accident and health
insurance policy. According to World Bank data, in 1960, the average life
expectancy of a Malaysian male was 59.4 years, and for females, it was 60.3
years. In 2011, this figure reached 72.1 years for men and 76.5 years for
women. Life expectancy is expected to increase further by the end of the
forecast period. This trend indicates a need for insurers to provide medical
plans to cover policyholders beyond the current life expectancy, which will
contribute towards the growth of the personal accident and health
segment.
The boost in medical insurance premiums this year is a direct result of
higher healthcare costs, according to agents who have to bear the bad
news to their clients. Calling for insurance companies to justify the increase
with facts and figures, Namlifa president James Bong, said the pricier
coverage would also hinder Bank Negara’s goal to achieve a 75% insurance
penetration rate by 2020 and burden the public healthcare system.

7. The Malaysian personal accident and health insurance segment is highly
competitive, and contains both domestic and foreign insurers. LIAM
suggested all stakeholders, including the government, insurance
companies, private hospitals and doctors, as well as consumers work
together to address the higher costs. Leading companies include: Allianz
General, Berjaya Sompo Insurance, Etiqa Insurance, Lonpac Insurance,
MAA Assurance, MSIG Malaysia, Tokio Marine Insurance (Malaysia) and
Uni. Asia General Insurance. Increasingly, we see companies are involving
themselves in the social media space, and undergoing a re-branding to
lifestyle and wellness companies, and not just a company that sells
insurance. In addition, the increasing and unparalleled progress in
technology allows insurers the chance to really reduce and simplify their
offerings to the customer, with a handy approach allowing them the
chance to connect and integrate themselves into the lives of customers
instantly from anywhere. 2020 will be the times of change, and both
insurers and operators alike need to be keenly aware of the changes they
face from 2016 and beyond.

8. Key Topics Covered in the Report:
Non-life insurance industry
Global life insurance
Life insurance businesses
Insurance sector worldwide
Malaysia non- life insurance market research
Non-Life insurance sector trends Malaysia
Malaysia General insurance regulations
Health insurance market research Malaysia
Health insurance demand Malaysia
Personal Accident Insurance Malaysia
For more coverage click on the link below:
https://www.kenresearch.com/banking-financial-services-and-
insurance/insurance/personal-accident-health-insurance-malaysia-key-
trends-opportunities/78833-93.html

9. Related links:
https://www.kenresearch.com/banking-financial-services-and-
insurance/insurance/personal-accident-health-insurance-peru-key-trends-
opportunities/78829-93.html
https://www.kenresearch.com/banking-financial-services-and-
insurance/insurance/personal-accident-health-insurance-singapore/74585-
93.html
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Ken Research
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Ankur@kenresearch.com
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