Local insurers may get hurt if crisis widens

PETALING JAYA: The credit crunch that is causing havoc in the US and European financial markets has little impact so far on local insurance companies but their performance may take a knock if the financial crisis worsens, industry players said.

“If the credit crunch persists, it may affect the performance of insurance companies as it will have an impact on the local economy, hence affecting spending,” an insurer said.