The industry currently employs over 30,000 employees and hires over 190,000 agents in Malaysia

 

Kuala Lumpur, 24 October 2016 – The insurance and takaful industry which has been established for over hundred years in Malaysia is a resilient component of the financial sector.  It is a stable industry which has grown from strength to strength supporting the insurance needs of the Malaysian economy.

 

Currently the insurance and takaful industry employs over 30,000 employees and hires over 190,000 agents throughout the country.

 

In terms of employment vibrancy, insurance and takaful companies currently adopt a mixed culture of both local and foreign management styles. Working in an insurance or takaful company means an interesting combination of career and lifestyle, and this is an attraction for young talents.

 

Today, the insurance and takaful industry contributes 6% of Malaysia’s Gross National Income (GNI), with premiums totalling RM6.8 billion in 2015.  The industry is on a strong financial footing with excess capital of RM6.81 billion.

 

The insurance and takaful industry remains committed in providing high quality products and services to the rakyat.  To address the low protection gap we continue to reach out to urban, sub urban and rural areas and double up our efforts to promote suitable insurance products to suit different life stage needs of consumers. Today, the insurance and takaful industry serve the needs of the rakyat through easy access of buying insurance from agents, post office, bank, internet etc.

 

Despite the challenging environment, we are bracing ourselves in the coming years with courage and perseverance in managing our business and operations and prudent in cost management,” said LIAM, PIAM and MTA in a joint statement.

 

According to a recent survey conducted by LIAM, PIAM and MTA, the life insurance, general insurance and takaful companies continue to recruit new staff to fill up various positions available in these organisations. This is in tandem with the dynamic growth and transformation of the insurance and takaful industry under the Life Insurance and Family Takaful Framework (LIFE Framework) introduced by Bank Negara Malaysia which came into force on 23 November 2015.

 

The general and takaful insurance industry is bracing itself with a significant change over the next 3 years. With the implementation of the  Phased Liberalisation of the Motor and Fire Tariffs, the general and takaful industry will change the process of underwriting for these two classes, which comprise over 60% of the total insurance business. With this comes product innovations and also the pricing of products will no longer be on the archive method of following a set tariffs but on market rates.

 

In this environment, insurers will need to improve their skills set to ensure adequate cover with adequate pricing is provided to their customers.  Skilled workforce with the right acumen and calibre are important and with this changing trends, there will be employment opportunities in the industry.

 

As an innovative and progressive industry, there are whole spectrums of job opportunities available in the industry. There are a number of options to choose from for a career in insurance and takaful, namely marketing, distribution, underwriting, actuarial, operations, claims, customer service, investing, human resource and many more.

 

In line with the Government’s Transformation Programme, which emphasizes on establishing Malaysia as a major insurance centre, there is a high demand for skilled personnel in insurance and takaful industry.  As part of a 10-year Government initiative, it will ensure a long term job security for potential talents who plan to join the industry and consider the industry as a career of choice.  The insurance industry has also established a RM45 million Capacity Building Fund managed by the Malaysian Insurance Institute to provide world-class training programmes and certification courses for employees of the insurance industry. Through the training and certification courses, our agents and intermediaries undergo rigorous training and examinations to equip them with the knowledge, skills and competency to serve their policyholders.

 

For young undergraduates who are looking for a rewarding career in the insurance and takaful industry, there are two internship programmes offered by the respective insurance associations.

 

For the Life Insurance Industry,  the LIAM Structured Internship Programme is a 3-month internship programme which has commenced in September 2016.  Undergraduates are invited to submit their resumes to talent@liam.org.my.

 

For the General Insurance industry, PIAM introduced its General Insurance Internship for Talent (GIIFT) programme in July 2015.  Since then more than 116 undergraduates have experienced our 3 month internship programme with our member companies.  The internship provides a hands-on experience of working in an insurance company and gives the interns an understanding of how insurance companies operate and what are the career opportunities available.  PIAM invites applications for our 6th intake starting Jan 2017 and interested students can send their resumes to talent@piam.org.my.

 

With the new evolutions and changing landscapes in the insurance industry, it is important for companies to ensure they have the right talent with the necessary skills.  It is also particularly important for companies to have good succession planning programs in place, thereby the need for newer and younger recruits.

 

Moving forward, we remain optimistic that the industry is resilient to economic pressure as there is still big gap in life insurance and family Takaful coverage in Malaysia.  LIAM, PIAM and MTA will remain focus in implementing the various key initiatives under the LIFE Framework. Apart from promoting innovation and long term growth, the industry is gearing itself to improve productivity and create a more competitive market supported by higher level of professionalism and transparency which augurs well to meet the Government’s aspiration of insuring 75% of the population by 2020 and reducing the protection gap among Malaysians.

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