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The Sun
30-04-2025
- Automotive
- The Sun
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
Free Malaysia Today
29-04-2025
- Automotive
- Free Malaysia Today
General insurance premiums up 6.9% in 2024, but profits down
Motor insurance was the largest contributor to premium growth last year, thanks to a 2.1% increase in new vehicle registrations compared with 2023. (File pic) PETALING JAYA : The general insurance industry recorded RM23.1 billion in gross written premiums in 2024, marking a 6.9% growth compared with the preceding year. The General Insurance Association of Malaysia (PIAM) said this growth in general insurance premiums was mostly thanks to the recovery in vehicle sales and sustained momentum in infrastructure and liability-related insurance. However, PIAM said industry players saw their underwriting profit slashed by 11% last year. PIAM said motor insurance was the largest contributor to premium growth last year, with an additional RM651.1 million yielding a 6.7% rise, thanks to a 2.1% increase in new vehicle registrations compared with 2023. However, it said motor insurance providers saw their profits come 'under pressure' due to inflation in vehicle repair costs, the service tax increase for insurance firms and a rise in road accident claims. The association said fire insurance premiums rose by RM258.5 million, or 5.8%, from 2023, adding that this was a reflection of higher building material and reconstruction costs. PIAM said the medical and health insurance sub-sector also recorded growth with a 10% surge in premiums in 2024, despite a 12.5% decline in average premiums. 'However, this segment's net claims incurred ratio remains elevated at 68.3%, reflecting the ongoing challenges of medical inflation. '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 in a statement. The group nonetheless expressed confidence that the general insurance industry was on a steady path of growth despite external uncertainties and inflation. Bank Negara Malaysia previously called on insurers and takaful operators to review their repricing strategies for more 'reasonable implementation' after reports of a 40% to 70% hike in medical insurance premiums this year. Insurers and takaful providers said the increased premiums were 'unavoidable' in light of rising claims and medical inflation.
