KUALA LUMPUR: Malaysians can expect an increase in insurance premiums this year.
At the same time, industry players said there will be new and innovative products in tangent with the increase and in line with the expected positive economic growth in the country.
General Insurance Association of Malaysia (PIAM) chairman Chua Seck Guan added, however, it has not been determined yet by how much the premiums would go up.
Meanwhile, in a press statement here, Chua quoted a recent Fitch Rating Agency report that the demand for insurance products would grow in the near-term because of steadily rising disposable incomes and private consumption.
He said motor insurance would again be the fastest growing sector, attributed to a rebound in vehicle sales.
He said other key areas of growth would be in medical and health insurance, as well as liability and disaster related insurance.
Chua said because of cases of natural disasters in past years, more people and businesses would take up insurance coverage as a risk management.
“The industry is also looking into educating the public on how to use insurance as an effective risk management tool. Adequate insurance protection could save them from financial ruin,” he said.
In another development, Chua said nett claims paid out for body injuries and property damage due to road accidents in the first nine months of last year rose to RM4.1bil, compared to RM3.68bil in the same period in 2012.
He said road accidents continued to rise during festive seasons, advising motorists to practise safe driving.
Chua said this during the launch and promotion of the PIAM-Malaysian Takaful Association (MTA) Accident Assist Call Centre at the Sungai Besi toll plaza yesterday.