Malaysia's insurance industry reports positive growth in 2005



Malaysia's insurance industry continued to report a positive growth in 2005, the Malaysian central bank said on Wednesday.

Combined premium income for life and general insurance business stood at 23.56 billion ringgit (6.37 billion U.S. dollars), up 6.9 percent from the previous year, due to the sustained economic activity and strong private consumption, the bank said in a report released in Kuala Lumpur.

The life insurance sector saw a moderate growth in the year as demand conditions had remained positive with the improving risk awareness and increasing affluence of the population, the bank said.

Overall, operating results remained favorable for both life and general businesses, supported by improved underwriting results, higher productivity, greater economies of scale, as well as the more efficient utilization of capital, particularly among general insurers, it said.

The level of insurance coverage continued to expand in 2005, according to the bank. Market penetration, measured in terms of life policies in force to the total population, deepened further to 38.7 percent, a little bit higher than the previous year's 37.9 percent.

The higher penetration in the life sector and increase in demand for general insurance, in turn, supported further increases in per capita spending on insurance.

Total assets of the insurance funds expanded to 96.74 billion ringgit (26.15 billion U.S. dollars) in 2005, up 11.4 percent from the previous year.

Source: Xinhua

We all can argue until the cows come home. The insurance industry is growing and more jobs are created from this industry. You decide for yourself whether can this product serves its purpose or not.

It surely takes some credibility and financial stability for some companies to be able to the following:
AIG/AIA sponsors Manchester United Football Club.
ING sponsors the Renault F1 team.