KUALA LUMPUR: Malaysia’s general insurance industry recorded gross written premium (GWP) of RM24.2 billion in 2025, representing a 4.8 per cent increase from RM23.1 billion in 2024, driven mainly by continued expansion in the motor and fire insurance segments, according to the General Insurance Association of Malaysia (PIAM).
PIAM chief executive officer Chua Kim Soon said the industry maintained its growth momentum last year, although at a slower pace compared with nearly seven per cent recorded in 2024.
"The growth was mainly driven by the two biggest classes of business, namely motor and fire insurance. Apart from that, personal accident (PA) insurance also grew quite well, registering double-digit growth,” he said during a media briefing here today.
Motor insurance remained the largest segment, accounting for 45.2 per cent of the total general insurance business, followed by fire insurance at 20.9 per cent.
Marine, aviation and transit (MAT) insurance accounted for 7.4 per cent of the general insurance portfolio, followed by PA insurance at 6.5 per cent and medical and health insurance (MHI) at 5.1 per cent.
Chua said the MAT segment recorded a slight decline amid geopolitical tensions and weaker global trade activity, while PA insurance registered a growth of 12 per cent, driven mainly by travel insurance demand.
Chua also said the industry’s underwriting profit rose by RM125 million year-on-year to RM1.2 billion, while the overall combined ratio for underwriting results remained at 93 per cent.
"This is encouraging because it signifies that the industry remains robust and capable of continuing to protect the public and consumers moving forward,” he said.
Chua said while the industry’s overall results remain healthy, signs of rising claim trends and mounting cost pressures are beginning to emerge.
According to Chua, geopolitical impacts remain one of the key challenges facing the industry.
"As we all know, last year saw the implementation of tariffs and other measures that created shocks to the global financial and economic environment. There was significant uncertainty that affected trade and investment flows.
"These developments also impacted supply chains, energy prices and logistics costs. Insurers continue to monitor these external developments closely and adjust operations accordingly,” he said.
Chua also identified climate change, electric vehicle adoption and inflationary pressures as among the key challenges facing the industry.
However, he said the Malaysian insurance industry has remained resilient and has managed to weather these challenges with minimal disruption to policyholders. - Bernama
