PIAM: General insurance industry remains on a steady growth path
KUALA LUMPUR: Malaysia's general insurance (GI) industry remains on a steady growth path despite external uncertainties and inflationary costs, said the General Insurance Association of Malaysia (PIAM).
In a statement today, it said 2025 will see continued emphasis on sustainable underwriting, innovation in electric vehicle insurance, and resilience-building against climate risks, as insurers align their strategies with evolving consumer needs and regulatory expectations.
'Malaysia's GI sector is poised for further growth in 2025, driven by economic recovery and increased demand for digital insurance products.
'There is also growing interest in natural catastrophe insurance. Medical cost inflation remains a concern, with projections rising from 15% in 2024 to 16.4% in 2025, significantly above the Asia-Pacific average of 10%,' it said.
According to PIAM, Malaysia's GI industry recorded a resilient performance, with gross written premium growing by 6.9% year-on-year (y-o-y) to RM23.1 billion in 2024, driven primarily by the recovery in vehicle sales and continued momentum in infrastructure and liability-related insurance.
'The GI industry remained robust despite global economic headwinds stemming from escalating trade tensions and inflationary pressures,' it said.
PIAM noted that motor, fire, marine aviation and transit segments led the premium growth, supported by strong domestic demand and industrial recovery initiatives under the national economic framework.
It said motor insurance contributes the largest share of total gross written premium, rising 6.7% to an additional RM651.1 million in premiums against the previous year, underpinned by a 2.1% y-o-y rise in new vehicle registrations, as reported by the Malaysian Automotive Association.
'Meanwhile, fire insurance premiums grew by 5.8%, amounting to RM258.5 million in additional premiums, driven by a 4.9% rise in average premiums – a reflection of higher material and reconstruction costs.
'Nevertheless, the fire business line remains the second-largest line and profitable with net claims incurred ratio at 34.1%, despite rising reinsurance costs and the frequency of weather-related events,' it added. – Bernama
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