21st May 2025 - 2 min read
Malaysia’s general insurance sector is expected to expand at a compound annual growth rate (CAGR) of 6.6%, with gross written premiums (GWPs) projected to rise from RM24.6 billion in 2025 to RM31.8 billion by 2029, according to the data and analytics firm, GlobalData.
The anticipated growth is being driven by a combination of factors, including higher premium rates across various insurance categories, robust demand for cover against natural disasters, the country’s economic rebound, increasing car sales, and mounting healthcare expenses.
Motor, property, and personal accident and health (PA&H) insurance collectively made up 82.6% of the industry’s GWPs in 2024, highlighting the continued dominance of these segments.
Swarup Kumar Sahoo, a senior insurance analyst at GlobalData, noted that ongoing regulatory efforts to broaden insurance coverage and develop the overall market will be key to the industry’s expansion. He also pointed to the rise in road traffic incidents and the growing frequency of extreme weather events as factors likely to encourage more policy uptake and support premium growth.
The forthcoming implementation of the Risk-Based Capital 2 (RBC2) framework in January 2027 is expected to further fortify the insurance landscape, fostering greater public trust and contributing to sustained growth.
Sahoo added that the steep rise in healthcare costs has prompted consumers to become more health-conscious, resulting in stronger demand for health insurance products. He also highlighted that premium rates are likely to remain on an upward trajectory due to an ageing population, the prevalence of non-communicable diseases, and ongoing pressures on the public healthcare system. The PA&H insurance segment, in particular, is forecast to grow at a CAGR of 7.6% between 2025 and 2029.
Other areas of general insurance, including financial lines, liability, marine, aviation, and transit insurance, are anticipated to make up the remaining 17.7% of Malaysia’s gross written premiums in 2025.
GlobalData maintains a positive outlook for Malaysia’s general insurance market, citing growing public awareness, regulatory advancements, and the increasing incidence of natural disasters as critical drivers of its future direction. However, it also cautioned that upcoming reciprocal tariffs from the United States could introduce new uncertainties and shift market dynamics.
(Source: The Edge)
Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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