Malaysia’s general insurance industry recorded RM23.1 billion in gross written premiums in 2024, representing a 6.9% increase over the previous year, according to the General Insurance Association of Malaysia (PIAM).
This growth was primarily driven by a rebound in vehicle sales and continued strength in infrastructure and liability-related insurance segments. However, the industry’s underwriting profit declined by 11% year-on-year, highlighting ongoing challenges despite rising premiums.
Motor insurance remained the leading contributor to overall premium growth, generating an additional RM651.1 million—a 6.7% year-on-year increase—supported by a 2.1% rise in new vehicle registrations compared to 2023. Yet, providers in this segment faced mounting pressure on profits, attributed to higher vehicle repair costs, an increase in service tax on insurance services, and a spike in road accident claims.
Fire insurance premiums also experienced notable growth, rising by RM258.5 million or 5.8%. PIAM noted that this was largely due to increased building material and reconstruction costs.
The medical and health insurance segment posted a 10% growth in premiums in 2024, despite a 12.5% drop in average premium prices. Nevertheless, the segment continues to face profitability challenges, with a net claims incurred ratio of 68.3%, reflecting persistent medical inflation pressures.
“If premium levels are not adjusted through coordinated industry initiatives, the sector may encounter further obstacles in maintaining profitability and managing risk,” PIAM warned in its statement.
Despite the headwinds, PIAM remains optimistic about the industry’s growth trajectory, citing resilience amid economic uncertainties and inflationary pressures.
Earlier, Bank Negara Malaysia urged insurers and takaful operators to adopt more balanced repricing strategies following public concern over medical insurance premium hikes ranging from 40% to 70% this year. Insurers have defended the increases as necessary, citing a surge in medical claims and inflation as key drivers.
