Malaysia's General Insurance Industry Grows 4.8%, Underwriting Profits Hit RM1.2 Billion

KUALA LUMPUR: The Malaysian general insurance industry demonstrated robust growth in 2025, achieving Gross Written Premiums (GWP) of RM24.2 billion, marking a significant 4.8% increase from RM23.1 billion in 2024. This expansion was accompanied by a rise in underwriting profits to RM1.2 billion, indicating a healthy RM125 million year-on-year increase, while the industry's combined ratio held steady around 93%.

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Insurans motor, yang kekal sebagai segmen terbesar dengan sumbangan 45.2 peratus daripada jumlah premium, masih mencatat kerugian pengunderaitan sebanyak RM289.3 juta dengan nisbah gabungan pada 103 peratus.

Chua Kim Soon, CEO of the General Insurance Association of Malaysia (PIAM), highlighted that motor insurance, despite remaining the largest segment contributing 45.2% to total premiums, still faces underwriting losses, reporting a combined ratio of 103%. Conversely, non-motor segments, particularly Fire, Marine, Aviation & Transit (MAT), and Personal Accident (PA) insurance, proved to be strong performers, significantly bolstering the industry's overall financial health. Fire insurance, for instance, generated an underwriting profit of RM700.8 million with a combined ratio of 69.5%.

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Sebaliknya, segmen bukan motor khususnya insurans Kebakaran, Marin, Penerbangan & Transit (MAT) serta Kemalangan Diri (PA) telah menyumbang secara positif kepada prestasi keseluruhan industri.

This improved underwriting performance is a testament to the industry's operational resilience and its capacity to absorb rising claim costs while continuing to protect millions of policyholders. PIAM remains focused on developing a comprehensive protection ecosystem to ensure faster recovery for Malaysians, covering assets, income sources, and business operations with the support of insurers and reinsurers. The combined growth of motor, fire, and PA insurance segments contributed to a 6.1% increase in industry premiums for 2025. However, the persistent underwriting losses in motor insurance, driven by high claim frequencies and rising costs, particularly for private cars and models like the Proton X50 and X70 among younger drivers, continue to pressure accumulated funds.

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Peningkatan prestasi pengunderaitan ini merupakan satu pencapaian operasi industri dan mencerminkan keupayaan sektor untuk menyerap peningkatan kos tuntutan, sambil terus melindungi jutaan pemegang polisi.