Fitch Ratings says Malaysia’s insurance and takaful sector may see its earnings stability challenged by regulatory initiatives and on-going capital market volatility. Otherwise, the sector will continue to be underpinned by steady market growth and sound capital management, as underlined in its Stable Outlook.
In a special report published today, Fitch says the regulator’s intention to eliminate both life insurers’ cap on acquisition costs and the fire tariff pricing structure could undermine the stability of insurers’ operating margin. The impending implementation of Personal Data Protection Act could also modify insurers’ business practice, potentially leading to higher compliance costs………………………………………..Full Article: Source