Insurance industry 2021 performance marks return after pandemic

KUALA LUMPUR – 2021 records a 3.0% growth to Malaysia’s property and casualty insurance sector, according to the Global Insurance Report 2022 by Allianz.

The group reported a growth in the sector after 2020 had a 0.6% decrease in its performance.

In a recent statement, it said that the life insurance segment maintained a healthy 8.0% growth brought on from enhanced risk awareness following the COVID-19 pandemic. The total market experienced a 6.5% increase from that.

Additionally, Allianz is anticipating growth to further increase to 8.3% this year for both life and property and casualty insurance segments projected at 9.1% and 6.3% respectively.

Furthermore, the group also expects the average growth of roughly 6.7% yearly over the coming decade with the forecast of life insurance at 6.9% and property and casualty insurance hovering at 6.1%. The forecast comes after reviewing the improved growth outlook which showed a 4.5% growth over the previous decade.

Global premiums increased 5.1% in the past year with the life and property and casualty segment each recording 4.4% and 6.3%, as a result of strong economic tailwinds, increasing risk awareness, and record-high savings fueled by thriving markets.

The report stated that the total premium income had amounted to 4.2 trillion Euros where the life and property and casualty insurance segments each recorded 2.5 trillion Euros and 1.7 trillion Euros.

The group added that 2021’s performance marked an unusual end to the past 10 years where growth performances were recorded at a yearly average of 3.6%.

Asia had contributed 40% of all additional premiums and more than half of these were written in China. Due to that, the report stated that China’s global market share had increased twofold to 12%.

Allianz added that 2022 was predicted to be another bumper year for the insurance sector but the Russian-Ukraine war had quashed these expectations.

“Overall, we now anticipate that global premium income will increase by 4.8% in 2022, with life and p&c developing almost in tandem at 4.9% and 4.6%, respectively, against the backdrop of a global inflation rate of 6.2% this year,” the report continued.

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