Malaysia Insurers Post Higher Profit

Malaysia’s general insurance industry recorded a higher underwriting profit in 2025, supported by stronger performance across key non-motor segments, according to data released by the General Insurance Association of Malaysia (PIAM).

The industry’s underwriting profit increased to RM1.2 billion in 2025, compared with RM1.04 billion in 2024, representing a year-on-year rise of 15.4%. The improvement was driven by better underwriting results across several business lines, particularly fire insurance, personal accident (PA) insurance, and marine, aviation and transit (MAT) insurance.

Gross written premiums (GWP) also continued to expand, rising by 4.8% to RM24.2 billion in 2025, up from RM23.1 billion in 2024. This growth was mainly supported by the motor and fire insurance segments, which remain the largest contributors to the general insurance market.

Despite overall growth, the motor insurance segment—still the largest class of business—continued to face underwriting pressure due to claims costs and market conditions. Non-motor segments, however, helped offset these challenges, contributing positively to the industry’s overall performance.

Key financial indicators

Indicator 2024 2025 Change
Underwriting profit RM1.04 billion RM1.2 billion +15.4%
Gross written premium (GWP) RM23.1 billion RM24.2 billion +4.8%
Main growth drivers Motor, fire Motor, fire Continued expansion
Motor segment performance Largest, under pressure Largest, still under pressure Persistent claims impact

Motor insurance accounted for around 45% of total general insurance business, followed by fire insurance at approximately 21%. Personal accident insurance also contributed a growing share, supported by increased demand.

Marine, aviation and transit insurance, along with fire and personal accident lines, were identified as key contributors to underwriting profitability, reflecting improved claims management and pricing discipline in those segments.

The industry’s performance reflects continued premium growth alongside improved underwriting efficiency. However, PIAM has noted that cost pressures and claims trends, particularly in motor insurance, remain structural challenges for the sector.

Overall, Malaysia’s general insurance market in 2025 demonstrated stronger profitability while maintaining steady premium growth, with non-motor segments playing an increasingly important role in balancing underwriting results.

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