Kuala Lumpur, 29 April 2025 – Malaysia’s General Insurance (GI) industry recorded a resilient performance in 2024, with Gross Written Premium (GWP) growing by 6.9% Year-on-Year (YoY) to RM23.1 billion, driven primarily by the recovery in vehicle sales and continued momentum in infrastructure and liability-related insurance.

The GI industry remained robust despite global economic headwinds stemming from escalating trade tensions and inflationary pressures. Notably, Motor, Fire, Marine Aviation and Transit (MAT) segments led the premium growth, supported by strong domestic demand and industrial recovery initiatives under the national economic framework.

 

Motor and Fire line of business continue to dominate as top premium contributors

Motor Insurance contributes the largest share of total GWP. The segment recorded an 6.7% increase, into an additional RM651.1 million in premiums compared to the previous year. This growth was underpinned by a 2.1% YoY rise in new vehicle registrations, as reported by the Malaysian Automotive Association (MAA).[1] However, profitability came under pressure from escalating repair cost inflation, increase in SST, and a rise in road accident claims, which collectively pushed net claims incurred upward by 18.8% over five years to RM6.5 billion in 2024.[2]

Fire Insurance premiums grew by 5.8%, amounting to RM258.5 million in additional premiums, driven by a in average premiums—a reflection of higher material and reconstruction costs. Nevertheless, Fire business line remains the second-largest line and profitable with Net Claims Incurred Ratio (NCIR) at 34.1%, despite rising reinsurance costs and the frequency of weather-related events.

Despite a in average premiums, Medical and Health Insurance (MHI) experienced growth, with 10.0% premium surge in 2024. However, MHI’s NCIR remains elevated at 68.3%, reflecting the ongoing challenges of medical inflation. If premium levels are not managed moving forward through industry-wide initiatives, the industry could face future headwinds in sustaining profitability and managing risks within this class of insurance business.

The Liabilities segment also showed strong performance with 8.1% GWP growth, attributed to expanding business and public liability exposures in the commercial sector. The Contractor’s All Risk & Engineering (CARE) line under Miscellaneous classes soared by 141.6% over the past 5 years, underlining the industry’s response to mega infrastructure project revivals and increased construction activity.

 

GI industry is sustainable with efficient operation and investment

The GI NCIR has increased from 53.7% in FY2022 to 57.6% in FY2024. This rise is primarily due to the deterioration of GI Motor claims (which make up 60.9% of 2024 Net Earned Premium). Motor and MHI portfolios have returned to pre-pandemic levels and now both stand around 10 percentage points above the overall GI NCIR.

Combined ratio for the GI industry held steady at 93.4%, indicating operational efficiency despite increased management expenses. Net commission ratios remained stable at 10.4%. Investment income played a pivotal role in sustaining profitability, contributing 60.0% of overall operating profits.

 

Despite external uncertainties and inflationary costs, the GI industry remains on a steady growth path. 2025 will see continued emphasis on sustainable underwriting, innovation in EV insurance, and resilience-building against climate risks, as insurers align their strategies with evolving consumer needs and regulatory expectations.

 

Malaysia’s Economic Fundamentals Remain Resilient

According to Bank Negara Malaysia’s Annual Report, Malaysia’s economy is projected to continue expanding into 2026, driven by sustained consumer spending, increased investments, and a rebound in exports.[3] On the other hand, Swiss Re Malaysia projected inflation to rise from 1.8% in 2024 to 2.2% in 2025, influenced by fuel subsidy reforms, wage adjustments, and the expansion of the Sales and Services Tax (SST).[4]

Malaysia’s GI sector is poised for further growth in 2025, driven by economic recovery and increased demand for digital insurance products. There is also growing interest in Natural Catastrophe (NatCat) insurance. Medical cost inflation remains a concern, with projections rising from 15% in 2024 to 16.4% in 2025, significantly above the APAC average of 10%.

 

 

[1] MAA, “TIV 2024 SURPASSED 800,000 UNITS THRESHOLD TO HIT AN ALL-TIME HIGH!”, Link, 21 Jan 2025.

[2] New Straits Times, “Eleventh hour service tax on maintenance and repair to hurt consumers and businesses alike”, Link, 28th Feb 2024.

[3] BNM Annual Report 2024, Link, 24/3/25.

[4] Swiss Re, “Global Economic Outlook & Impacts”, 21/3/25.

[5] Data from ISM Statistical Bulletin (SB-FINANCE-00001-25), Jan 25.