Malaysian general insurance industry grows 1.5%

GWP rebounds slightly after it entered negative territory in 2017, says insurance association

Malaysian general insurance industry grows 1.5%

Insurance News

By Gabriel Olano

Malaysia’s general insurance industry recovered slightly, posting a 1.5% increase in gross written premiums (GWP) in 2018, according to the General Insurance Association of Malaysia (PIAM).

The rebound was fuelled by the sector’s two largest insurance classes – motor and fire, Edge Markets reported.

In 2018, GWP was at MYR17.92 billion (SG$5.94 billion), compared to MYR17.65 billion (SG$5.86 billion) in the previous year. In 2017, the general insurance sector shrunk by 0.11% from MYR17.67 billion in 2016.

According to PIAM, the general insurance sector is expected to grow slowly in 2019.

“[In 2018], motor insurance remained the largest class with a market share of 47.3%, followed by fire at 19.6% and marine, aviation and transit (MAT) at 7.4%,” the association said in a statement.

Motor insurance GWP grew by 1.8% year-on-year to MYR8.47 billion (SG$2.81 billion) in 2018, alongside rising vehicle sales in Malaysia, in both the private use and commercial vehicle segments.

Almost 600,000 new vehicles were sold in Malaysia in 2018 compared to 580,000 in 2017, the report said, highlighting the tax-free months of June to August 2018, when sales picked up. However, Malaysia also has one of the highest incidences of road accidents in the world, and total motor insurance claims rose to MYR5.45 billion (SG$1.81 billion) in 2018.

Meanwhile, GWP in the fire insurance segment grew 2.8% in 2018 to MYR3.51 billion (SG$1.16 billion).

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