Malaysia's insurance sector sees quick recovery until 2030

The sector dodges contraction with a measly 0.9% premium growth this year.

The Malaysian insurance sector is set to quickly recover from the pandemic with a projected growth of 5.8% annually over the next decade, according to an Allianz Global Insurance Report.

The sector grew 4.9% in 2019 with life insurance premiums surging 7.4%. This year, Malaysia is one of the markets appearing to avoid contraction even if premiums are only expected to grow 0.9%.

On the bright side, the sector will recover by 7% in 2021 with expected steady growth until 2030.

Malaysia has one of the most developed insurance markets in the Asia Pacific with premiums per capita standing at $409.62 (EUR363) in 2019 and a 3.5% penetration rate. Asia, in general, will remain gloomy for the rest of 2020 with an expected decline in premium income by 0.7%, but long-term prospects look brighter with an average annual growth rate of 8.1% until 2030.

Photo courtesy of Pexels.com.