Page 66 - LIAM Annual Report 2020

64 ANNUAL REPORT 2020

PERFORMANCE OF THE LIFE INSURANCE INDUSTRY

Life Insurance Business

For the financial year ended 31 December 2020, the life insurance industry registered a moderate growth of
5.3% in total business in force from RM41.2 billion in 2019 to RM43.4 billion in 2020.

Despite the challenging business environment and the slowdown in the economy due to the COVID-19
pandemic, the life insurance industry achieved an encouraging growth in its Investment-Linked business,
recorded in force premiums growth of 9.8% from RM21.0 billion in 2019 to RM23.1 billion in 2020.

The total in force premiums for traditional policies grew by 1% to RM16.3 billion while Group insurance registered
a slight growth of 3.6% to RM3.5 billion.

IN FORCE PREMIUMS

January to December
RM million
2019 2020 Growth
Traditional 16,130 16,289 1.0
Investment-linked 21,012 23,064 9.8
Annuity 623 475 -23.7
Group 3,418 3,541 3.6
Total 41,183 43,369 5.3

Total sum assured in force grew by 4.3% from RM1.6 trillion in the previous year to RM1.7 trillion in 2020.
Investment-linked business also recorded an encouraging growth of 8.9% in total sum assured to RM765 billion
in 2020 as compared to RM702 billion in the previous year. Traditional policies grew by 0.4% while Group
policies increased by 1% as compared to the previous year.

SUM ASSURED IN FORCE

RM million 2019 2020 Growth
Traditional 326,668 327,814 0.4
Investment-Linked 702,337 765,072 8.9
Annuity 414 390 -6.0
Group 586,658 592,488 1.0
Total 1,616,077 1,685,763 4.3

The total number of policies in force recorded a marginal growth of 0.9% from 12.7 million units in 2019 to
RM12.8 million units in 2020.

Investment-linked business also recorded an encouraging growth of 4.4% in number of policies in force to
reach 5.9 million units in 2020.

Meanwhile, Group policies increased marginally at 2.2% while traditional policies recorded a slight decline of
1.8% in 2020.

Life Insurance Association of Malaysia