KUALA LUMPUR: Malaysia’s general insurance (GI) industry recorded a solid performance in 2024, with gross written premiums (GWP) rising 6.9 per cent year-on-year (YoY) to RM23.1 billion.
According to General Insurance Association of Malaysia (PIAM), the industry’s growth was largely fuelled by the recovery in vehicle sales and continued momentum in infrastructure development and liability-related insurance.
PIAM noted that the motor, fire, and marine, aviation and transit (MAT) segments were the key drivers of premium growth.
“This is supported by strong domestic demand and ongoing industrial recovery efforts under the national economic agenda,” it said in a statement.
The association said motor insurance remained the largest contributor to total GWP, recording a 6.7 per cent increase amounting to an additional RM651.1 million in premiums underpinned by the rise in new vehicle registrations.
The sector’s profitability came under pressure from rising repair costs, the reintroduction of the Sales and Services Tax (SST), and an uptick in road accident claims.
Net claims incurred in the motor segment increased by 18.8 per cent over five years to RM6.5 billion in 2024.
Meanwhile, PIAM noted that the fire insurance segment grew 5.8 per cent, translating into RM258.5 million in additional premiums, driven largely by higher average premiums due to rising material and reconstruction costs.
Despite the increase in reinsurance expenses and frequent weather-related events, it said the segment line remains profitable with a net claims incurred ratio (NCIR) of 34.1 per cent.
On medical and health insurance (MHI), PIAM said it recorded a 10.0 per cent surge in premiums, despite a 12.5 per cent decline in average premiums.
The NCIR for MHI stood at a high 68.3 per cent, reflecting persistent medical inflation pressures, it said.
“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,” it said.
PIAM said Malaysia’s GI industry is expected to maintain its growth trajectory in 2025, supported by a recovering economy and increased uptake of digital insurance products.
“There is also rising interest in natural catastrophe insurance in response to climate-related risks
“Nevertheless, medical cost inflation remains a pressing concern, with projections climbing from 15 per cent in 2024 to 16.4 per cent in 2025—well above the Asia-Pacific average of 10 per cent,” it added.
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