What drove Malaysia’s general insurance market to rise 4%?

Motor insurance accounted for 42.8% of total premiums or $1.3b.

The general insurance market in Malaysia saw its first half (H1 2025) gross written premium register $3.1b (RM12.3b), data from the General Insurance Association of Malaysia (PIAM) showed.

This was a 4.0% year-on-year (YoY) increase, driven by improved operating performance and efficiency. Underwriting profit rose by $38.3m (RM153m) to $157.3m (RM629m) during the period.

Motor insurance, which accounted for 42.8% of total premiums or $1.3b (RM5.3b), remained the largest business line but continued to post underwriting losses, with a combined ratio of 102.2% due to higher claims frequency and severity. 

Growth in the motor segment slowed to 5.7% year-on-year in 1H2025 from 8.0% a year earlier.

Non-motor lines helped offset these losses. Fire insurance, the second-largest segment with $0.7b (RM2.6b) in premiums and a 21.1% share of the portfolio, recorded a combined ratio of 67.3% and maintained growth of around 10.4% since the fourth quarter of 2024. 

Personal accident (PA) premiums reached $0.2b (RM0.8b), representing 6.4% of the portfolio, with an 11.2% growth rate. Marine, aviation and transit (MAT) and CARE segments also remained profitable.

Overall, the combined performance of motor, fire and PA supported a 5.6% increase in industry GWP in the first half.

The industry continues to face headwinds from geopolitical uncertainty, including higher US tariffs of up to 19% on a wide range of goods, rising climate-related risks, cybersecurity and technology exposures, shifting consumer expectations, and cost pressures from inflation, higher bodily injury claims and increasing spare part prices.

To address these challenges, insurers are stepping up efforts in financial inclusion, talent development, digitalisation and road safety. 

Initiatives include consumer education programmes, participation in the government’s Perlindungan Tenang Voucher scheme for lower-income groups, and the General Insurance Internship for Talent (GIIFT) programme.

($1.00 =RM4.06)