Malaysia General Insurance industry will likely see more consolidation and acquisition from now till 2016. This is due to Bank Negera Malaysia easing its restrictions to allow foreign companies to own stakes from 49% to 70%.
The detariffation of the insurance industry by 2016 will see more competition as once the statutory tariffs are abolished, insurance companies are able to compete on their strength to capture market position. Currently, all insurance companies premium are basically the same as the rate are controlled by Bank Negera Malaysia.
The competitions will likely benefits consumers in terms of lower premium as insurance companies in Malaysia fight for market shares. Apart from price, insurance companies would too focus in providing better service; faster claim payout etc to win over competitors.
We can expect more innovative products, creative pricing etc to cater to specified market group or profile. The detariffation of the insurance industry should benefit Malaysia in the long run, as bigger and much experience insurance companies are likely to venture to Malaysia.