Kuala lumpur: Malaysia's general insurance industry experienced a noteworthy year in 2025, with the General Insurance Association of Malaysia (PIAM) reporting a gross written premium (GWP) of RM24.2 billion. This marks a 4.8 percent rise from RM23.1 billion in 2024, primarily fueled by growth in the motor and fire insurance segments.
According to BERNAMA News Agency, PIAM's chief executive officer, Chua Kim Soon, stated that while the industry sustained its growth momentum, the pace was slower than the nearly seven percent growth recorded in 2024. Chua highlighted that the motor and fire insurance sectors were the primary drivers of this growth, with personal accident (PA) insurance also showing significant progress, achieving double-digit growth.
Motor insurance continued to dominate the sector, making up 45.2 percent of the total general insurance business, followed by fire insurance at 20.9 percent. The marine, aviation, and transit (MAT) insurance segment accounted for 7.4 percent, while PA insurance constituted 6.5 percent, and medical and health insurance (MHI) represented 5.1 percent of the portfolio.
Chua noted a slight decline in the MAT segment due to geopolitical tensions and reduced global trade activity. In contrast, PA insurance saw a 12 percent growth, largely driven by an increased demand for travel insurance.
The industry's underwriting profit increased by RM125 million compared to the previous year, reaching RM1.2 billion, with the combined ratio for underwriting results holding steady at 93 percent. Chua remarked that these results demonstrate the industry's robustness and its ability to continue safeguarding public and consumer interests.
Despite the positive outcomes, Chua acknowledged emerging challenges, such as rising claim trends and cost pressures. He identified geopolitical impacts as a significant challenge, noting last year's tariffs and other measures that caused disruptions in global financial and economic environments, affecting trade, investment flows, supply chains, energy prices, and logistics costs.
Chua also pointed out that climate change, electric vehicle adoption, and inflationary pressures pose challenges to the industry. Nevertheless, he assured that the Malaysian insurance sector has shown resilience, managing to navigate these challenges with minimal disruption to policyholders.