Malaysia’s Insurance Growth In The First Half Of 2025

Malaysia’s general insurance sector has demonstrated remarkable resilience, recording a steady expansion in the first half of 2025 (H1 2025). According to data released by the General Insurance Association of Malaysia (PIAM), the industry’s gross written premium (GWP) reached $3.1 billion (RM 12.3 billion), marking a 4.0% year-on-year increase. The growth was largely underpinned by improved operational efficiency and enhanced underwriting performance.

Underwriting profits also saw a notable rise, climbing by $38.3 million (RM 153 million) to reach $157.3 million (RM 629 million) during the period. This demonstrates the sector’s gradual shift towards sustainable profitability despite ongoing challenges in certain lines of business.

Motor insurance remains the largest segment of the market, contributing 42.8% of total premiums, or $1.3 billion (RM 5.3 billion). However, the segment continued to report underwriting losses, with a combined ratio of 102.2%, reflecting higher frequency and severity of claims. Growth in the motor segment decelerated to 5.7% in H1 2025, down from 8.0% a year prior.

Non-motor insurance lines helped to cushion the overall performance. Fire insurance, the second-largest category, generated $0.7 billion (RM 2.6 billion) in premiums, representing 21.1% of the portfolio. With a combined ratio of 67.3% and consistent growth of 10.4% since Q4 2024, it has played a crucial role in stabilising the market.

Meanwhile, personal accident (PA) insurance achieved $0.2 billion (RM 0.8 billion) in premiums, accounting for 6.4% of the portfolio, with a strong growth rate of 11.2%. Other segments, including Marine, Aviation & Transit (MAT) and CARE insurance, also maintained profitability, reinforcing the sector’s diverse revenue streams.

Collectively, the robust performance across motor, fire, and PA insurance contributed to an overall 5.6% increase in industry GWP for the first half of the year.

Despite these gains, insurers are navigating several headwinds, including geopolitical uncertainty, higher US tariffs of up to 19%, climate-related risks, rising cybersecurity threats, shifting consumer expectations, inflationary pressures, higher bodily injury claims, and escalating spare part costs.

To address these challenges, insurers have intensified efforts in financial inclusion, talent development, digitalisation, and road safety initiatives. Key programmes include consumer education campaigns, participation in the government’s Perlindungan Tenang Voucher Scheme for lower-income groups, and the General Insurance Internship for Talent (GIIFT) programme.

Malaysia General Insurance Market Snapshot – H1 2025

The Malaysian general insurance industry is clearly evolving, balancing growth with prudence, and embracing innovation to overcome emerging economic and technological challenges.