Malaysia insurance premiums rise to $5.8b despite motor losses in 2025

Gross written premiums rose 4.8% to $5.8b last year.

Malaysia’s general insurance industry reached a gross written premium of $5.8b (RM24.2b) in 2025, marking a 4.8% increase from $5.5b (RM23.1b) the previous year.

According to data released by the General Insurance Association of Malaysia (PIAM), the sector's total underwriting profit rose by $30m (RM125m) year-on-year to reach $288m (RM1.2b).

Motor insurance remains the largest sector in the market, accounting for 45.2% of all premiums.

However, the segment continued to experience underwriting losses, losing $69.4m (RM289.3m) with a combined ratio of 103%.

In contrast, non-motor segments drove the industry's overall profitability. Fire insurance was the strongest performer, generating an underwriting profit of $168.2m (RM700.8m) and recording a profitable combined ratio of 69.5%.

Other segments, including Marine, Aviation and Transit (MAT) alongside Personal Accident (PA), also posted positive underwriting results.

In East Malaysia, data highlighted specific regional trends, showing lower motor loss ratios but an increase in the severity of fire claims.

The figures also revealed a persistent gap in flood protection across the region, where claims occur less frequently but incur higher individual costs.

Chua Kim Soon, Chief Executive of PIAM, stated that the improved underwriting performance reflects the sector's capacity to absorb rising claims costs whilst maintaining coverage for policyholders.

He added that the industry's focus remains on strengthening financial resilience and ensuring faster recovery times for businesses and individuals across the country.

($1.00 = RM4.15)