Malaysia's insurance sector to maintain its growth momentum in the first quarter of 2026 (Q12026), driven by improvements in both the general and life insurance segments, MBSB Investment Bank (MBSB IB) expects.
In a note released yesterday, the bank highlighted that both segments have rebounded, with medical claims remaining manageable due to a milder monsoon season, NST covered.
“However, the sector may face challenges in the coming quarters. In Q12026, the full impact of the West Asia conflict has yet to materialise, while the stronger ringgit has helped keep the cost of imported car parts and other claim-related components relatively low,” it said.
For context, the Life Insurance Association of Malaysia (LIAM) previously reported that medical claims inflation eased to 5.3% y-o-y in 2025, the lowest level in recent years. This contributed to a steady overall increase in life insurance claims, which rose by 3.4% y-o-y during the year.
MBSB IB noted that the early impact of the war was largely limited to businesses, but its prolonged duration is now beginning to weigh on consumers through rising cost pressures.
The bank added that retail loans have already shown signs of weakening in recent years, and continued strain on the mass market could further intensify this trend.