KUALA LUMPUR: The general insurance industry, which registered a marginal growth of 0.7% with gross written premiums of RM9.23 billion in the first half of 2018 (1H18), is expected to remain subdued for the rest of the year, with low single digit growth.
"A single digit growth of 1%-2% could be achievable," General Insurance Association of Malaysia (PIAM) chairman Antony Lee said at a media briefing on the general insurance's 2018 first-half performance here today.
However, PIAM deputy chairman Chua Seck Guan said that the industry's performance going forward would depend on vehicles sales, as the motor business continued to be the industry's key sector in 1H18, contributing 45.6% of gross direct premiums.
Additionally, Lee said that the implementation of the Service Tax at 6% on insurance premium early next month would also have a spillover effects on the consumers.
On Malaysia Competition Commission's (MyCC) penalty proposal against PIAM's members, Lee said that the association had yet to receive any feedback from MyCC so far since it lodged its written representations with the commission last year.
"We anticipate to hearing something (from MyCC) in the next 30 to 60 days," Lee added, without elaborating further.