Life insurance business a profitable industry

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Life insurance business a profitable industry A total of RM29 billion was received for 2018 and 2019, while there was an increase for 2020 of RM31 billion. theSun thesundaily insurance BNM payclaims

insurance is an important method of protection. Malaysia has various insurance companies and takaful operators. This article focuses on life insurance companies in Malaysia.

In addition, to promote business continuity, income from the sale of policies, i.e. premiums received by life insurance companies, is also not taxable. Apart from that, the government also gives relief to life policy buyers, up to a maximum of RM3,000. This shows the importance of life insurance to the people and country.

Whereas for 2020, there was a slight decrease in gross income amounting to RM42 billion, of which RM8 billion was from locally-owned companies, and the rest from foreign-owned companies. The plausible explanation for the reduction in 2020 may be due to the Covid-19 pandemic that hit Malaysia towards the end of 2019, where it had a huge impact on the country and across the globe.

From the total number of policies sold or risks to be borne, life insurance companies have reinsured some of the risks to reinsurance companies. Only 4% of reinsurance policies have been purchased by life insurance companies. This indicates that life insurance companies, whether foreign owned or locally owned, have a high ability to pay claims in the event of an insured risk.

 

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