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Brunei Insurance Industry – Key Trends and Opportunities to 2025

The total gross written premium of insurance market in Brunei was valued at $217.6 million in 2020. The market is projected to grow at a CAGR of more than 5% during the period 2021-2025. Despite the challenges provided by the Coronavirus (COVID-19) pandemic, the Bruneian insurance industry remained unaffected in a variety of ways since the country was less affected by the pandemic. Brunei’s insurance industry comprises 13 insurance companies, of which three are life insurers, six are general insurers and the rest are takaful insurers.

In 2020, in insurance market in Brunei, General Insurance was the largest segment followed by Life Insurance. General insurance segment accounted for more than 60% of the total insurance and Motor and Property Insurance were the largest segments in General Insurance. Life insurance penetration in the country has consistently been quite low when compared to both emerging and developed markets, showing a lack of awareness and resources among the public.

Overview of insurance market in Brunei

Overview of insurance market in Brunei

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What are the market dynamics in Insurance market in Brunei?

Considering the challenges posed by the COVID-19 pandemic, Bruneian insurance business was unaffected in a variety of ways. Similarly, the life insurance and general insurance segments were unaffected by the pandemic, both recording a stable annual growth. Despite the worldwide pandemic impacting sales in nearly every market, the Brunei automobile market continued to develop. Sales for 2020 were up 2.3% over the previous year, 2019. Due to increased sales, the segment’s premiums also increased.

E-Health:

The country launched AI-enabled m-Health app (www.healthinfo.gov.bn) in early 2020 in response to the pandemic. It contains published press statements related to COVID-19 from government ministries and health education resources. Other e–health innovations in the country include the iMSAFE wristband, to help track and monitor recovered patients who were allowed to return home, and the BruHealth app, to regulate entry into corporate premises or sports events using QR code scans.

Green Investment:

Brunei intends to strengthen its renewable energy (RE) deployment to 10% by 2035, as stated in its Vision 2035. The country’s energy strategy has been influenced by the global energy shift toward more sustainable energy production. To achieve its vision in 2035, the Brunei government has identified three strategic targets. The primary goal is to improve the country’s oil upstream and downstream. The second goal is to ensure that sustainable energy is developed, and the third goal is to optimize economic development through the energy industry.

Electric Vehicles:

The Ministry of Transport and Information (MTIC) officially launched a pilot project in March 2021 for electric vehicles (EVs) in Bridex Hall 2 in Jerudong with the Ministry of Energy and the Brunei Climate Change Secretariat (BCCS). The initiative will promote the usage of electrical transmission, its advantages and recharge stations.

Reinsurance:

The share of total reinsurance cession rate increased from 22.72% in 2019 to 23.04% in 2020, reflecting that insurer operating in the country are covering more risk. The country’s life reinsurance ceded declined during the review period whereas Brunei’s general reinsurance ceded grew during the same period. There are no mandatory reinsurance cession requirements and compulsory cession rates for insurers operating in the Bruneian insurance industry.

Insurtech:

Brunei’s insurtech industry is still in its early stages, with the majority of technological advances taking place in the Takaful insurance segment. The unprecedented conditions of the COVID-19 pandemic have encouraged businesses to embrace digital technology in order to stay in business. With the benefit of requiring little-to-no contact or physical interaction, digital payments are a useful way to pay for products and services, while maintaining social distance.

What are the segment classifications in Brunei’s insurance market?

In 2020, General Insurance accounted for the highest share in the Brunei’s insurance market.

General insurance:        

In General Insurance segment, various Lines of Business include motor insurance, property insurance, liability insurance, marine aviation and transit (MAT) insurance, personal accident and health insurance (PA&H) and miscellaneous insurance. Among the lines of business, marine aviation and transit (MAT) insurance is expected to project the most stable growth during the forecast period followed by Property Insurance. The presence of mandatory classes such as motor third-party liability insurance, professional indemnity insurance, oil pollution liability insurance, workmen’s compensation insurance, aviation liability and group medical insurance also supported GWP growth in the segment.

Life insurance:

Various categories under the Life Insurance segment in Brunei include life, whole life, endowment, term life, other life insurance and life personal accident and health insurance (PA&H). The retail consumer segment was the leading segment and the segment’s growth was mainly driven by whole life insurance in 2020 followed by endowment. Life PA&H grew significantly in 2020 owing primarily due to the COVID-19 pandemic and rising health concerns in the country.

Insurance market in Brunei, by Segment

Insurance market in Brunei, by Segment

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Who are the major market players in insurance market in Brunei?

In 2020, AIA Singapore Private Limited (Brunei) was the leading market player in the Brunei Life insurance market while the rest of the market was shared by other companies. During the same period, Audley Insurance Company Sdn Bhd was the leading market player in the general insurance market in Brunei followed by National Insurance Company Berhad and Standard Insurance Sdn Bhd.

Life insurance market in Brunei, by key players

Life insurance market in Brunei, by key players

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Market report scope

Market size (Year – 2020) -Insurance $217.6 million (Gross Written Premiums)
Growth rate – Insurance CAGR of more than 5% from 2021 to 2025
Base year for estimation 2020
Market Segments Life Insurance, General Insurance
Forecast period 2021-2025
Key players Standard Insurance Sdn Bhd, National Insurance Company Berhad, Audley Insurance Company Sdn Bhd and AIA Singapore Private Limited (Brunei)

This report provides a comprehensive analysis of the insurance segment in Brunei.

  • Provides historical values for Brunei’s insurance segment for the report’s 2016-2020 review period, and projected figures for the 2021-2025 forecast period.
  • Offers a detailed analysis of the key categories in Brunei’s insurance segment, and market forecasts to 2025.
  • Profiles the top life insurance companies in Brunei and outlines the key regulations affecting them.

What was the gross written premiums value for insurance market in Brunei in 2020?

The total gross written premium of insurance market in Brunei was valued at $217.6 million in 2020.

What is the growth rate of insurance market in Brunei?

The insurance market in Brunei is projected to grow at a CAGR of more than 5% during the period 2021-2025.

What are the key segments in Brunei’s insurance market?

Key segments in Brunei’s insurance market includes life insurance and general insurance.

Who are the key market players in the insurance market in Brunei?

In 2020, AIA Singapore Private Limited (Brunei) was the leading market player in the Brunei Life insurance market while the rest of the market was shared by other companies. During the same period, Audley Insurance Company Sdn Bhd was the leading market player in the general insurance market in Brunei followed by National Insurance Company Berhad and Standard Insurance Sdn Bhd.

Reasons to Buy

  • Make strategic business decisions using in-depth historic and forecast market data related to Brunei’s insurance segment, and each category within it.
  • Understand the demand-side dynamics, key market trends and growth opportunities in Brunei’s insurance segment.
  • Assess the competitive dynamics in the Bruneian insurance segment.
  • Identify growth opportunities and market dynamics in key product categories.

Key Players

AIA Singapore Private Limited (Brunei)

Audley Insurance Company Sdn Bhd

National Insurance Company Berhad

Standard Insurance Sdn Bhd

Table of Contents

Table of Contents

Executive Summary

Economy Overview

Regulatory and Compliance

COVID-19 Impact Assessment

Key Market Trends

Life Insurance Overview

Penetration and Growth

Premiums and Key Lines of Business

Key Trends by Consumer Segment

General Insurance Overview

Penetration and Growth

Premiums and Profitability

Lines of Business Breakdown

Competitive Landscape

Insurance Industry – Market Share and Concentration

Competitors Profiles

Reinsurance Overview

Reinsurance Ceded Premiums

Regulatory and Compliance

Insurtech

Appendix

    Pricing

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