Page 4 - LIAM Annual Report 2020

2 ANNUAL REPORT 2020

PRESIDENT’S MESSAGE

n behalf of the The strong support of the Management Committee
Management and the close bond shared by the 16 LIAM member
O Committee, it companies have enabled the industry to implement
gives me great honor forward-looking strategies and pro-active measures
and privilege to present to withstand the challenges brought about by this
healthcare crisis.
the Life Insurance
Association of Malaysia Despite the challenging business landscape, the
Annual Report for 2020. industry continues to progress with its business-as-
usual activities under the new normal by adhering to
2020 will certainly be a strict standard operating procedures in delivering our
year imprinted in all our services to the rakyat.
memories for decades
to come. The global I am pleased to share the industry’s key activities and
COVID-19 pandemic, highlights for the year 2020.
which upended the
lives of people in nearly INDUSTRY’S PERFORMANCE
every country including For the financial year ending December 2020, the
Malaysia, brought life insurance sector recorded a moderate single
about unprecedented digit growth in total in-force business despite the
challenges to the nation’s challenging business landscape due to the COVID-19
economy and healthcare, pandemic.
impacting businesses in Total in force premiums increased by 5.3% from RM41.2
all sectors. billion in 2019 to RM43.4 billion in 2020. The total sum
assured in force grew by 4.3% from RM1.6 trillion to
The life insurance RM1.7 trillion in 2020.
business in Malaysia
has not been spared The total number of policies in force also recorded a
from the impact of the marginal growth of 0.9% from 12.7 million units in 2019
pandemic. Nevertheless, to RM12.8 million units in 2020.
the industry has adapted However, in terms of new business performance for
itself to the challenges 2020, the industry recorded a slight decline of 3.2 %
brought about by the in New business total premiums from RM11.7 billion in
pandemic. Our robust 2019 to RM11.4 billion in 2020.
Business Continuity
Plans that we have put The New business sum assured also declined by 7.2%
into action and the from RM471.3 billion in 2019 to RM437.2 billion in 2020
resilience that we have and the number of new policies also dipped 7.1%
from 1.3 million units to 1.2 million units.
built into the business
have enabled us to LIFE INSURANCE BUSINESS IN THE NEW
navigate these uncertain
times with confidence NORMAL
and diligence. In the past year, all life insurance companies put into
place a robust Business Contingency Plan even before
the Movement Control Order was implemented.

Life Insurance Association of Malaysia