Malaysia's General Insurance Market Report 2025
- EverBright Actuarial
- Jul 28
- 6 min read
Malaysia’s general insurance industry is on a positive growth trajectory, projected to expand at a compound annual growth rate (CAGR) of 6.6% from $5.5 billion in 2025 to $7.2 billion by 2029, based on gross written premiums (GWP).
This growth is fueled by premium rate hikes, increased demand for natural catastrophe coverage, economic recovery, rising vehicle sales, and escalating healthcare costs. In 2024, motor, property, and personal accident and health (PA&H) insurance accounted for 82.6% of the total general insurance GWP.
Regulatory efforts by Bank Negara Malaysia (BNM) aim to boost insurance penetration to 5% by 2026 from 4.4% in 2024, through initiatives like expanding microinsurance and digital. However, external pressures such as new reciprocal tariffs from the US could impact future growth dynamics.
The market is dominated by key lines of business including motor, property, and PA&H, with motor remaining the largest segment. Major players include Allianz General Malaysia, which held the highest market share in 2023, followed by Etiqa General, Generali Malaysia, MSIG Insurance Malaysia, and Liberty General Berhad.
The upcoming Risk-Based Capital 2 (RBC2) framework in January 2027 is expected to enhance industry resilience. Digital transformation is playing a pivotal role, with initiatives like BNM's Digital Insurers and Takaful Operators (DITO) framework and insurtech innovations driving inclusion and efficiency.
Market Overview and Projections
The Malaysian general insurance market is expected to grow steadily amid economic recovery and regulatory support. The following table outlines the projected market size based on GWP:
Year | GWP ($ billion) | Growth Notes |
2025 | 5.5 | Baseline projection |
2029 | 7.2 | CAGR of 6.6% from 2025-2029 |
Growth drivers include:
Premium rate increases and higher demand for catastrophe coverage.
Rising vehicle sales (up 2.1% to 816,747 units in 2024, with electric vehicles surging 64%).
Escalating healthcare costs (medical inflation at 15% in 2024).
Regulatory initiatives like BNM's Financial Inclusion Framework 2023–2026 and a 10% cap on annual health premium increases starting December 2024.
The industry faces challenges from increasing natural disasters, traffic accidents, and potential external factors like US tariffs, which could affect trade-related insurance lines and overall economic growth.
Lines of Business
The general insurance market is segmented into key lines, with motor, property, and PA&H dominating. Other lines include financial, liability, and marine, aviation, and transit (MAT) insurance. In 2025, these segments are projected as follows:
Line of Business | Share of GWP (%) in 2025 | Projected CAGR (2025-2029) | Key Drivers and Notes |
Motor | 44.7 | Not specified | Growth from vehicle sales, road accidents, and disaster coverage. Leading segment. |
Property | 26.2 | Not specified (5.8% growth in 2025) | Driven by construction expansion and frequent floods/extreme weather. |
Personal Accident & Health (PA&H) | 11.4 | 7.6% | Supported by medical inflation, aging population, non-communicable diseases, and strained public healthcare. |
Others (Financial, Liability, MAT, Miscellaneous) | 17.7 | Not specified | Includes niche covers; growth tied to overall economic activity. |
In 2024, motor, property, and PA&H collectively represented 82.6% of GWP. Motor insurance benefits from rising demand for comprehensive policies amid increasing accidents.
Property insurance growth is linked to climate risks, with a 4.6% rise in 2024 expected to accelerate to 5.8% in 2025. PA&H is poised for the highest CAGR among major segments due to health consciousness and demographic shifts.
Digital Transformation in Malaysia's General Insurance Market
Digital transformation is accelerating in Malaysia's general insurance sector, driven by regulatory support, technological advancements, and the need to address a substantial protection gap. Digital initiatives are projected to expand the overall insurance and takaful market to RM116 billion by 2030, up from current levels, by enabling affordable, simple, and personalized products.
This growth targets a RM78 billion digital insurance opportunity between 2024 and 2030, focusing on underserved segments where 10.2 million individuals and 644,000 MSMEs lack coverage due to barriers like affordability (47% for retail), complexity (41%), and lack of personalization (27%).
Strategies include AI-driven insights, modular platforms, and globally proven models to enhance accessibility and trust.
Bank Negara Malaysia (BNM) is at the forefront, with the Licensing and Regulatory Framework for Digital Insurers and Takaful Operators (DITO) launched in 2024 to promote inclusion, competition, and efficiency.
Applications opened on 2 January 2025, with eased entry requirements such as lower minimum capital during an initial three-to-seven-year phase, emphasizing fully digital operations, consumer-centric models, robust risk management, and strong consumer protection.
This framework aligns with the Financial Sector Blueprint 2022–2026 and is expected to boost digitalization across the sector. Additionally, BNM's RESET initiative, introduced in 2025, aims to restructure insurance offerings and digitize healthcare to combat soaring medical inflation.
Insurtech developments are gaining momentum, with companies like PolicyStreet providing tech-enabled insurance and healthcare solutions. The sector is progressing cautiously but with strong government backing, focusing on customer engagement, product comparison platforms, and broker collaborations.
Trends include digital claims management, AI for business intelligence, and online insurance platforms, with the Malaysia Online Insurance Market expanding due to technological improvements and rising demand.
Major players are leading the charge. Zurich Malaysia, for instance, has set benchmarks with initiatives like the MyZurich Mobile App (real-time coverage, claims submission, and tracking), MyZurichLife platform (policy management), E-Reinstatement (digital process efficiency), Claims Automation (faster notifications), and Cyber Fraud Protect (three-click subscription via partnership with GX Bank). These efforts earned Zurich five awards at the Digital CX Awards 2025, including Outstanding Digital CX – General Insurance (Malaysia), underscoring their impact on customer experience in general insurance.
The following table highlights key digital transformation initiatives and players:
Initiative/Player | Description | Impact/Notes |
BNM DITO Framework | Licensing for digital insurers; applications from Jan 2025; lower capital requirements initially. | Promotes competition, inclusion; aligns with blueprint for efficiency |
BNM RESET Initiative | Restructuring insurance and digitizing healthcare to address medical inflation. | Targets PA&H segment; enhances sustainability. |
Zurich Malaysia Digital Tools | MyZurich App, Claims Automation, Cyber Fraud Protect. | Award-winning CX improvements; faster claims, user-centric design. |
PolicyStreet | Insurtech platform for insurance and healthcare. | Makes policies accessible via tech; focuses on underserved markets. |
AI and Modular Platforms (EY Strategies) | AI insights for personalization; modular product delivery. | Bridges protection gap; RM78b opportunity by 2030. |
Digital transformation is essential for the sector's resilience, with potential to digitize or face obsolescence in a competitive landscape.
Major Market Players and Performance
The Malaysian general insurance market is competitive, with a mix of local and international insurers. Based on available data, Allianz General Malaysia led the market in 2023 with the highest share of GWP.
Other prominent players include Etiqa General, Generali Malaysia, MSIG Insurance Malaysia, and Liberty General Berhad. Detailed market share percentages for 2024 or 2025 are not publicly available in summarized reports, but the overall market DWP was MYR20.9 billion ($4.6 billion) in 2023.
The following table summarizes key players and available performance insights:
Company | Market Position (2023) | Key Performance Notes |
Allianz General Malaysia | Highest share | Strong in motor and property lines; benefits from global expertise in risk management. Projected to maintain leadership amid market growth. |
Etiqa General | Top-tier | Focus on takaful and general insurance; growth supported by digital initiatives and regulatory alignment. |
Generali Malaysia | Significant player | Emphasizes property and liability; performance tied to construction and commercial sectors. |
MSIG Insurance Malaysia | Key competitor | Leading in ASEAN region; noted for accident insurance partnerships (e.g., ASEAN Football Federation in 2025). |
Liberty General Berhad | Notable share | Specializes in personal and commercial lines; resilient amid economic recovery. |
Performance data for 2024-2025 is limited, but the sector as a whole is expected to grow at over 7% CAGR through 2028, with leaders like Allianz benefiting from motor and property expansions. Players are adapting to regulatory changes, such as the RBC2 framework, to improve capital efficiency and resilience.
Challenges and Outlook
While the outlook is optimistic, risks include escalating natural disasters, medical inflation, and geopolitical factors. Notably, new reciprocal tariffs from the US could disrupt trade, affecting MAT and financial lines, and potentially slowing overall GWP growth.Rising traffic accidents and climate events will drive demand but also increase claims pressures.
In conclusion, Malaysia's general insurance market is set for robust expansion, supported by economic and regulatory tailwinds. Major players like Allianz are well-positioned, but adaptation to external pressures will be key to sustaining growth.
To thrive in this dynamic environment, insurers and stakeholders can benefit from expert guidance provided by EverBright Actuarial Consulting. Founded in 2014, EverBright Actuarial Consulting Limited offers comprehensive actuarial and consulting services, specializing in life insurance, health insurance, group medical, and digital insurance solutions. Partner with EverBright to enhance resilience, optimize growth, and navigate the evolving landscape of general insurance—visit www.ebactuary.com for more information.
