Medical and health insurance next engine of growth

Daily Express: Kuala Lumpur: The General Insurance Association of Malaysia (Piam) says the medical and health insurance (MHI) business will become the fastest growing sector over the next few years.
"The country's growing population and the increasing need for healthcare insurance are the catalysts that have sparked the demand for MHI in Malaysia," said Piam's chairman, Hashim Harun in a statement Tuesday.
"The increasing costs of healthcare services have resulted in a growing number of consumers turning to private insurance to help them manage the cost of private medical treatment, such as the cost of hospitalisation and other healthcare services," he said.
"As MHI business currently accounts for about four percent of total premiums in the general insurance industry, there is strong potential to grow the business further," he added.
Annual premium income generated by both life and general insurers from yearly renewable MHI policies has increased by an average annual rate of 28 per cent to RM1.5 billion in 2005.
Total premiums in the general insurance industry recorded RM9.39 billion in 2005.
In its statement Piam also urged consumers to learn more about the different types of MHI policies that are available such as Hospital & Surgical, Critical Illness, Hospital Income and Long-term Care insurances, so as to make informed decisions when purchasing a MHI policy.