The Malaysian general insurance industry's gross written premium (GWP) grew 6.9% y-o-y to MYR23.1bn ($5.3bn) in 2024.
According to the General Insurance Association of Malaysia (PIAM), this 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. Notably, 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.
Motor and fire line of business continue to dominate as top premium contributors. Motor insurance contributes the largest share of total GWP. The segment recorded an 6.7% increase, into an additional MYR651.1m in premiums compared to the previous year.
This growth was underpinned by a 2.1% y-o-y rise in new vehicle registrations, as reported by the Malaysian Automotive Association.
Fire Insurance premiums grew by 5.8%, amounting to MYR258.5m in additional premiums, driven by a 4.9% rise in average premiums—a reflection of higher material and reconstruction costs. Nevertheless, fire business line remains the second-largest line and profitable with net claims incurred ratio at 34.1%, despite rising reinsurance costs and the frequency of weather-related events.
Despite a 12.5% decrease in average premiums, medical and health insurance experienced growth, with 10.0% premium surge in 2024. The liabilities segment also showed strong performance with 8.1% GWP growth, attributed to expanding business and public liability exposures in the commercial sector. The contractor’s all risk & engineering line under miscellaneous classes soared by 141.6% over the past 5 years, underlining the industry’s response to mega infrastructure project revivals and increased construction activity.
Malaysia’s general insurance sector is poised for further growth in 2025, driven by economic recovery and increased demand for digital insurance products. There is also growing interest in Nat CAT insurance. Medical cost inflation remains a concern, with projections rising from 15% in 2024 to 16.4% in 2025, significantly above the APAC average of 10%.