Malaysia’s general insurance market is expected to maintain steady momentum into 2025, despite economic uncertainties and rising medical and climate-related costs, according to recent updates from the General Insurance Association of Malaysia (PIAM).
The association reported a 6.9% year-over-year increase in gross written premiums (GWP) to MYR23.1 billion (approximately US$5 billion) for 2024.
PIAM attributed this performance to improved automobile sales, increased activity in infrastructure projects, and sustained demand for liability and industrial-related coverage.
Among the key contributors to premium growth were motor and fire insurance, followed by marine, aviation, and transit segments.
PIAM noted that motor insurance remained the leading business line, posting a 6.7% rise in premiums, equivalent to an additional MYR651.1 million. This was driven in part by a 2.1% increase in new vehicle registrations, according to data from the Malaysian Automotive Association.
Fire insurance premiums also rose by 5.8%, contributing an additional MYR258.5 million, amid higher reconstruction and material costs.
Despite increased reinsurance charges and climate-related risks, the fire segment remained profitable, with a net claims ratio of 34.1%.
In a statement outlining the outlook for 2025, PIAM emphasised the sector’s continued alignment with sustainability initiatives, digital transformation, and preparedness for environmental risks.
The association noted that strategies for 2025 will include innovations in electric vehicle insurance and a focus on enhancing underwriting resilience.
“Despite external uncertainties and inflationary costs, the GI industry remains on a steady growth path. 2025 will see continued emphasis on sustainable underwriting, innovation in EV insurance, and resilience building against climate risks, as insurers align their strategies with evolving consumer needs and regulatory expectations,” it said.
Looking ahead, the general insurance market is projected to continue expanding. Research from analytics firm GlobalData estimated that direct written premiums in Malaysia will grow at a compound annual rate of 7.8%, increasing from MYR22.6 billion (US$5 billion) in 2024 to MYR30.5 billion (US$6.8 billion) by 2028.
Sneha Verma, an analyst with GlobalData, said persistently high claim payouts linked to medical inflation and regular occurrences of natural disasters are likely to prompt insurers to reevaluate their risk portfolios and implement pricing adjustments.
