RAM Ratings Maintains Stable Outlook on Malaysia’s Insurance and Takaful Industry

RAM Ratings (RAM)’s outlook on the Malaysian insurance and Takaful sector remains stable despite COVID-19 and the consequent Movement Control Orders (MCOs) having adversely impacted the performance of insurers and Takaful operators in Malaysia in 2020. The overall effect has still been manageable thanks to a strong rebound in the second half of 2020, as restrictions eased and as players started adapting to the new normal.

Why it Matters?

Going forward, insurance and Takaful industry capitalisation should stay sound, despite the economic challenges. Co-Head of Financial Institution Ratings of RAM, Sophia Lee, stated that it is believed that the insurance and Takaful industry will overcome the adversities of COVID-19 and that the degree of recove...