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

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High Healthcare Cost boosting Medical Insurance
Sector in Malaysia Ken Research
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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).
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• 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 industrys 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.

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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
nations middle class population is expected to
increase over the forecast period and drive
growth in the personal accident and health
segment.
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• 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 countrys 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 governments public healthcare
  system. The governments 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.

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• 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 Negaras goal to
  achieve a 75 insurance penetration rate by 2020
  and burden the public healthcare system.

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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.
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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-financ
ial-services-and-insurance/insurance/personal-acci
dent-health-insurance-malaysia-key-trends-opportun
ities/78833-93.html
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rtunities/78829-93.html https//www.kenresearch.c
om/banking-financial-services-and-insurance/insura
nce/personal-accident-health-insurance-singapore/7
4585-93.html Contact Us Ken ResearchAnkur
Gupta, Head Marketing CommunicationsAnkur_at_kenre
search.com91-9015378249
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