Malaysia’s general insurance industry is projected to expand to MYR31.8 billion (US$7.2 billion) by 2029, growing from an estimated MYR24.6 billion (US$5.5 billion) in 2025, according to new figures released by GlobalData.
This forecast reflects an annual compound growth rate of 6.6%, underpinned by stronger pricing, economic recovery, increased demand for catastrophe coverage, and rising medical costs.
The majority of premium volume in 2024 – 82.6% – was attributed to motor, property, and personal accident and health (PA&H) insurance segments, signalling their continued significance in Malaysia’s insurance landscape.
GlobalData senior insurance analyst Swarup Kumar Sahoo noted that Bank Negara Malaysia (BNM) continues to implement structural initiatives to boost market access and inclusion.
The central bank’s Financial Inclusion Framework (2023–2026) aims to increase insurance and takaful penetration to approximately 5% by 2026. The current rate is 4.4%, indicating room for expansion. The framework includes efforts to broaden access to microinsurance and microtakaful offerings and to promote digital channels for more affordable distribution.
BNM also introduced a cap on annual health insurance premium increases, limiting hikes to 10% from 2024 through 2026. Additionally, the introduction of the Risk-Based Capital 2 (RBC2) regime in January 2027 is expected to strengthen financial resilience across the sector.
Motor insurance continues to dominate, forecast to represent 44.7% of total premiums in 2025. The growth in this line is supported by higher vehicle registrations and road accident rates. According to the Ministry of Transport, road accidents result in around 1.3 million deaths annually.
Data from the Malaysian Automotive Association (MAA) showed that vehicle sales increased 2.1% in 2024 to 816,747 units.
Electric vehicle (EV) adoption rose sharply, with registrations climbing 64% and EVs accounting for 2.54% of total vehicles, trends that are expected to influence future product development in the sector.
Property insurance, the second-largest segment, is forecast to represent 26.2% of premiums in 2025. Its projected growth of 5.8% is attributed to robust construction activity and increased flooding across Malaysian states, which has driven demand for fire policies with flood add-ons.
Personal accident and health insurance is set to account for 11.4% of the market by 2025. Rising medical inflation – estimated at 15% in 2024 – along with demographic trends such as an aging population and a rise in chronic illnesses, are expected to sustain this segment’s growth. GlobalData forecasts a 7.6% CAGR for PA&H lines from 2025 to 2029.
“High healthcare costs heightened health consciousness among consumers, supporting the demand for health insurance policies. Premium rates will continue to increase in the presence of the aging society, rising non-communicable diseases, and a strained public healthcare system,” Sahoo said.
The remaining share of the general insurance market – around 17.7% – comprises financial lines, liability coverage, and marine, aviation, and transit insurance.
While smaller in volume, these segments remain exposed to pricing pressures and economic volatility.
Sahoo noted that ongoing regulatory enhancements, rising consumer awareness, and the impact of climate-related risks will shape future developments in Malaysia’s general insurance industry. However, he added that external uncertainties, including changes in trade policies, could influence the sector’s trajectory.
Separately, the General Insurance Association of Malaysia (PIAM) reported that total GWP grew 6.9% year-on-year to MYR23.1 billion (US$5 billion) in 2024. This increase was driven by stronger motor and fire lines, alongside steady demand in marine, aviation, and transit coverage.
Motor insurance premiums rose by MYR651.1 million or 6.7%, correlating with increased vehicle registrations.
Fire insurance premiums also grew 5.8%, adding MYR258.5 million, amid higher costs of materials and reconstruction.
PIAM stated that despite challenges including inflation and climate-related risk, insurers are focusing on sustainable underwriting, product innovation for EVs, and strategies to build climate resilience.
