Malaysia: Insurance market set to grow on demand for online insurance sales
Source: Asia Insurance Review | Jun 2025
Malaysia’s general insurance market is poised for further growth in 2025, driven by economic recovery and increased demand for digital insurance products, said the General Insurance Association of Malaysia (PIAM). There is also growing interest in natural catastrophe insurance.
In a statement, PIAM said 2025 would see continued emphasis on sustainable underwriting, innovation in electric vehicle insurance, and resilience-building against climate risks, as insurers align their strategies with evolving consumer needs and regulatory expectations.
However, PIAM cautioned, “Medical cost inflation remains a concern, with projections rising from 15% in 2024 to 16.4% in 2025, significantly above the Asia-Pacific average of 10%.”
According to PIAM, Malaysia’s general insurance sector recorded a resilient performance in 2024, during which gross written premium grew by 6.9% year-on-year (y-o-y) to MYR23.1bn ($5.4bn). The growth was driven primarily by the recovery in vehicle sales and continued momentum in infrastructure and liability-related insurance.
The general insurance industry remained robust despite global economic headwinds stemming from escalating trade tensions and inflationary pressures, the statement said.
PIAM noted that motor, fire, marine aviation and transit segments led the premium growth, supported by strong domestic demand and industrial recovery initiatives under the national economic framework. It said motor insurance contributed the largest share of total gross written premium, rising by 6.7% to an additional MYR651.1m in premiums against the previous year, underpinned by a 2.1% y-o-y rise in new vehicle registrations, as reported by the Malaysian Automotive Association. A