{"id":18704,"date":"2015-09-04T11:02:57","date_gmt":"2015-09-04T03:02:57","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=18704"},"modified":"2018-01-24T13:59:36","modified_gmt":"2018-01-24T05:59:36","slug":"general-insurance-industry-stagnates-in-2h2015","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/general-insurance-industry-stagnates-in-2h2015","title":{"rendered":"General Insurance Industry Stagnates in 2H2015"},"content":{"rendered":"
The general insurance industry is forecasted to be stagnant in the second half of 2015, and also next year, due to the fall in new car sales, and the sliding market value of used cars.<\/p>\n
The insurance industry\u2019s growth depended on these two factors, as the automobile business makes up 50% of the general insurance\u2019s portfolio, said Datuk Syed Moheeb Syed Kamarulzaman, chief executive officer of the Malaysian Insurance Institute (MII).<\/p>\n
The decline in the market value for used cars impact insurance premiums, and when new car sales plummet, policies take up will also be impacted, he added.<\/p>\n
\u201cWe anticipate a stagnation in growth as these two factors contribute significantly to the industry,\u201d he told a media briefing at the General Insurance Agents Convention 2015 (GIAC).<\/p>\n
Typically, new car sales would stagnate in the second half of the year, and hence year-on-year, not much growth would be seen for the said period, explained Syed Moheeb.<\/p>\n
\u201cThe growth is tapering off due to the moderation in consumer spending and challenging business and operating environment,\u201d he said.<\/p>\n
Syed Moheeb also said that the motor insurance<\/a> industry registered a much slower growth rate of 2.1% for the first half of this year compared with 8.3% for the same period last year.<\/p>\n Moving forward, he said, the current slowdown in the domestic and global economies would last until 2016 and the general insurance industry would not see much growth in the motor insurance sector.<\/p>\n \u201cThe strategy which it (the industry) is adopting next year is basically to focus on training programmes and upgrading the professional education syllabi to meet the changing needs of the industry,\u201d he said.<\/p>\n It’s time to renew your car\u00a0insurance? Compare\u00a0the rates<\/a> from different insurers now.<\/p>\n [Source<\/a>]<\/em><\/p>\n Malaysia’s general insurance industry is expecting a flat growth in the second half of the year and next year due to the slowdown in automotive sales. <\/p>\n","protected":false},"author":9,"featured_media":18705,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[238,237,133,216],"tags":[],"class_list":["post-18704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-auto-insurance","category-autos","category-insurance","category-news-updates"],"acf":[],"yoast_head":"\nDoes buying car insurance from different companies in Malaysia matter? Find out now<\/a>.\u00a0<\/strong><\/h3>\n[sc:testallianz]\n","protected":false},"excerpt":{"rendered":"