RAM Ratings: Malaysia's Insurance Industry to Recover from Impacts of COVID-19 in 2021

The outbreak of the COVID-19 pandemic is expected to destabilize the growth of the conventional insurance as well as the Takaful industry in 2020, before any recovery can be expected in 2021, according to RAM Ratings.

Despite challenges with respect to short-term growth, RAM Ratings anticipates the life and family Takaful businesses to be sustained in the long run by Malaysia's favourable demographics and stable demand for medical coverage, which is further enhanced by a significant increase in medical costs.

Driven by the challenging economic environment and the gradual impact of tariff liberalization on the motor and fire insurance segments, RAM Ratings expects insurance premiums a...