Malaysia Life & Annuity Insurance Market Size (2024 - 2029)

The Malaysia Life & Annuity Insurance Market is anticipated to experience growth in its market size over the forecast period from 2024 to 2029. Despite challenges posed by the pandemic, the industry demonstrated resilience with notable growth in premium value. The introduction of initiatives like the Perlindungan Tenang Voucher program has contributed to increased policy issuance and premium collection. Additionally, the establishment of the Professional Standards Committee marks a significant step towards enhancing ethical standards within the industry, further supporting its expansion.

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Market Size of Malaysia Life & Annuity Insurance Industry

Malaysia Life And Annuity Insurance Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 9.60 Billion
Market Size (2029) USD 11.89 Billion
CAGR (2024 - 2029) 4.37 %
Market Concentration High

Major Players

Malaysia Life And Annuity Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

Malaysia Life & Annuity Insurance Market Analysis

The Malaysia Life & Annuity Insurance Market size in terms of premium value is expected to grow from USD 9.60 billion in 2024 to USD 11.89 billion by 2029, at a CAGR of 4.37% during the forecast period (2024-2029).

Even though the pandemic made it hard to do business, the life insurance industry as a whole did better in the fiscal year that ended in December 2021, with double-digit growth of 12.4% compared to 2020.

The industry recorded RM 12.8 billion in new business total premiums from RM 11.4 billion in 2020, while new business sum assured grew by 5.4% from RM 437.2 billion in 2020 to RM 461.1 billion in 2021. New policies issued in 2021 amounted to 1.9 million, an increase of 53.5% from 1.2 million policies in 2020. This was made possible by the introduction of the Perlindungan TenangVoucher (PTV) program in September 2021.

The total in-force premiums increased by 8%, from RM 43.4 billion in 2020 to RM 46.8 billion in 2021. The sum assured in force grew by 5.6%, amounting to RM 1,779.5 billion in 2021 compared with RM 1,685.8 billion in 2020, while the total number of policies in force registered a modest increase of 4.1% from 12.8 million policies in 2020 to 13.4 million policies in 2021.

The formation of the Professional Standards Committee (PSC) in August 2021 to take on the functions of the former Financial Services Professional Board (FSPB) (which ceased operations in December 2020) is a significant development in pursuit of the industry's agenda to advocate professional ethical standards among life insurance companies in Malaysia.

Malaysia Life & Annuity Insurance Industry Segmentation

Life and annuity insurance refers to a financial product that features a predetermined periodic payout amount until the death of the annuity owner or annuitant.

Life and annuity insurance is one of the most widely demanded products as people adopt digitalization. The Malaysian life and annuity insurance market is segmented by product type (conventional, investment-linked, and annuities), by user type (individual and group), and by distribution channel (direct, brokers, banks, online, and other distribution channels). The report offers market size and forecasts for the Malaysia Life and Annuity Insurance Market in terms of volume (number of products) and value (USD million) for all the above segments.

By Product Type
Conventional
Investment Linked
Annuity
By End-User Type
Individual
Group
By Distribution Channel
Direct
Brokers
Banks
Online
Other Distribution Channels
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Malaysia Life & Annuity Insurance Market Size Summary

The Malaysia Life & Annuity Insurance Market is poised for significant growth over the forecast period, driven by a resurgence in demand for life insurance products. Despite challenges posed by the pandemic, the industry demonstrated resilience with substantial growth in new business premiums and policies issued. The market is characterized by a strong preference for endowment and unit-linked products, which offer better returns compared to traditional bank deposits. Insurers are enhancing the appeal of these products through attractive add-ons, such as guaranteed cash payments and higher maturity returns, to boost sales. The introduction of initiatives like the Perlindungan Tenang Voucher program has further stimulated market activity, contributing to the increase in new policies and premiums.

The competitive landscape of the Malaysian life and annuity insurance market is marked by the presence of several key players, including Allianz Malaysia Berhad, AmMetLife, Axa, Etiqa Life Insurance Berhad, Sun Life Malaysia, Zurich Life Insurance, and Prudential Assurance Malaysia. These companies are leveraging technological advancements to enhance their service offerings and improve operational efficiency. The market is also witnessing strategic acquisitions, such as Liberty Mutual Insurance's acquisition of AmGeneral and Generali's majority stake in AXA's businesses, which are expected to strengthen their market positions. The formation of the Professional Standards Committee underscores the industry's commitment to upholding ethical standards, further supporting its growth trajectory.

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Malaysia Life & Annuity Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Value Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights of Technology Innovations in the Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product Type

      1. 2.1.1 Conventional

      2. 2.1.2 Investment Linked

      3. 2.1.3 Annuity

    2. 2.2 By End-User Type

      1. 2.2.1 Individual

      2. 2.2.2 Group

    3. 2.3 By Distribution Channel

      1. 2.3.1 Direct

      2. 2.3.2 Brokers

      3. 2.3.3 Banks

      4. 2.3.4 Online

      5. 2.3.5 Other Distribution Channels

Malaysia Life & Annuity Insurance Market Size FAQs

The Malaysia Life & Annuity Insurance Market size is expected to reach USD 9.60 billion in 2024 and grow at a CAGR of 4.37% to reach USD 11.89 billion by 2029.

In 2024, the Malaysia Life & Annuity Insurance Market size is expected to reach USD 9.60 billion.

Malaysia Life & Annuity Insurance Market Report Snapshots

Malaysia Life & Annuity Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)