Malaysia’s general insurance sector has recorded a modest but notable growth in the first half of 2025, with gross written premiums (GWP) reaching $3.1 billion (RM12.3 billion), according to data released by the General Insurance Association of Malaysia (PIAM). This represents a 4.0% year-on-year (YoY) increase, largely driven by enhanced operational efficiency and stronger underwriting performance.
During the same period, underwriting profits rose by $38.3 million (RM153 million), bringing total profits to $157.3 million (RM629 million).
Motor Insurance Remains Largest Segment, Yet Challenges Persist
Motor insurance continued to dominate the market, accounting for 42.8% of total premiums, or $1.3 billion (RM5.3 billion). However, the sector continued to experience underwriting losses, with a combined ratio of 102.2%, driven by higher claims frequency and severity. Growth in this segment slowed to 5.7% YoY in the first half, compared with 8.0% in the previous year.
Non-motor segments, meanwhile, provided a stabilising effect on overall market performance.
| Segment | GWP ($) | GWP (RM) | Portfolio Share | Growth YoY | Combined Ratio | Notes |
|---|---|---|---|---|---|---|
| Motor Insurance | 1.3b | 5.3b | 42.8% | 5.7% | 102.2% | Largest segment; still posts losses |
| Fire Insurance | 0.7b | 2.6b | 21.1% | 10.4% | 67.3% | Profitable, steady growth |
| Personal Accident (PA) | 0.2b | 0.8b | 6.4% | 11.2% | – | Consistently profitable |
| Marine, Aviation & Transit (MAT) / CARE | – | – | – | – | – | Stable and profitable |
Fire insurance, the second-largest line, maintained strong performance, with a combined ratio of 67.3% and sustained growth since the fourth quarter of 2024. Personal accident (PA) insurance contributed 6.4% of the total portfolio with an 11.2% growth rate, while Marine, Aviation, Transit (MAT), and CARE segments continued to operate profitably.
The combined performance of motor, fire, and PA lines contributed to an overall 5.6% increase in industry GWP during the first half of 2025.
Industry Challenges and Strategic Responses
Despite the growth, the Malaysian insurance industry faces multiple headwinds:
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Geopolitical uncertainty, including US tariffs up to 19% on a wide range of goods.
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Rising climate-related risks and natural disasters.
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Cybersecurity and technological exposures.
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Shifting consumer expectations.
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Cost pressures from inflation, higher bodily injury claims, and rising spare part prices.
In response, insurers are intensifying efforts in financial inclusion, talent development, digitalisation, and road safety initiatives. Key programmes include:
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Consumer education campaigns.
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Participation in the government’s Perlindungan Tenang Voucher scheme for lower-income groups.
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The General Insurance Internship for Talent (GIIFT) programme, aimed at nurturing the next generation of industry professionals.
Analysts note that these initiatives are crucial not only for mitigating risks but also for sustaining long-term market stability and profitability.