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Malaysia Motor Insurance Market Size (2024 - 2029)

The Malaysia motor insurance market is experiencing a transformation with the implementation of risk-based pricing, replacing fixed tariffs, which is altering insurer operations. Despite a decline in new motor insurance premiums during the pandemic due to reduced vehicle sales, the market's gross written premiums remain significant, underscoring its prominence within the general insurance sector. The market size is expected to grow, driven by increased digital insurance facilities and a rise in insurance penetration, particularly following the phased liberalization efforts.

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Market Size of Malaysia Motor Insurance Industry

Malaysia Motor Insurance Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 1.50 %
Market Concentration Medium

Major Players

Malaysia Motor Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

Malaysia Motor Insurance Market Analysis

Malaysia's Motor Insurance Market has generated a gross written premium of USD 1.92 Billion in the current year and is poised to achieve a CAGR of 1.5% for the forecast period. Malaysia is one of the leading global Islamic Capital Market (ICM) hubs. Malaysia has the major Islamic banking assets outside of the Middle East during the pandemic. Third-party insurance coverage is the most basic vehicle insurance policy existing in Malaysia. With a phased liberalization of Malaysia motor insurance fixed tariffs are swapped by risk-based pricing changing the way insurers operate.

The Life Insurance Association of Malaysia (LIAM), The General Insurance Association of Malaysia (PIAM), and the Malaysian Takaful Association (MTA), which have power over the insurance sector, reiterated the member insurance companies to run during the COVID-19 pandemic. With pandemic restrictions, most of the insurance renewals were carried out online to ensure the safety of the customers during the pandemic. The new motor insurance premiums declined during the pandemic owing to the low sales of new motor vehicles despite this the amount of gross written premiums in the motor insurance sector of Malaysia amounted to 8.4 billion Malaysian ringgit leading the general insurance market.

The Malaysian motor insurance market is likely to increase after a phased liberalization development, which switched fixed tariffs for risk-based pricing and remains unchanged in the way insurers operate. Rising digital insurance facilities are expected to increase insurance penetration in malaysian market and to drive motor insurance market as well.

Malaysia Motor Insurance Industry Segmentation

A motor insurance policy is a mandatory policy issued by an insurance company as part of the prevention of public liability to protect the general public from any accident that might take place on the road.

The Malaysian Motor Insurance Market is segmented by Insurance Type (Third Party Liability and Comprehensive) and by Distribution Channel (Agents, Brokers, Banks, Online, and Other Distribution Channels). The report offers market size and forecast values for the Malaysia Motor Insurance Market in USD million for the above segments.

Insurance Type
Third Party Liability
Comprehensive
Distribution channel
Agents
Brokers
Banks
Online
Other Distribution Channels
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Malaysia Motor Insurance Market Size Summary

The Malaysian motor insurance market is experiencing a transformative phase characterized by the transition from fixed tariffs to risk-based pricing, a change that is reshaping the operational dynamics of insurers. This shift is part of a broader phased liberalization strategy aimed at enhancing market competitiveness. The market, which is a significant component of Malaysia's general insurance sector, is witnessing increased digitalization, which is expected to boost insurance penetration and drive growth. The introduction of innovative insurance products and strategic partnerships, such as those between Policy Street and CARSOME, are further propelling the market forward by addressing diverse customer needs and enhancing coverage options.

Despite challenges posed by the COVID-19 pandemic, which led to a decline in new motor insurance premiums due to reduced vehicle sales, the market is poised for recovery and expansion. The resurgence in vehicle sales, particularly in the passenger car segment, is contributing to the growth in gross written premiums. The market remains fragmented with key players like Allianz, Pacific Orient, RHB Insurance, Takaful Malaysia, and Etiqa Malaysia leading the charge. Initiatives such as the nationwide Road Safety Campaign by PIAM and MTA highlight the industry's commitment to enhancing road safety and promoting insurance awareness. As the market anticipates further liberalization, it is expected to continue its upward trajectory, driven by innovation and strategic collaborations.

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Malaysia Motor Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Sales of Motor Vehicles In The Region

      2. 1.2.2 Increasing competition among the players decreasing insurance price.

    3. 1.3 Market Restraints

      1. 1.3.1 Fluctuating Inflation Rate affecting sales of Motor vehicle

      2. 1.3.2 Negative Impact of Covid On per capita Income in Malaysia

    4. 1.4 Market Opportunities

      1. 1.4.1 Expansion of the Digital Insurance market driving motor insurance

      2. 1.4.2 Rise in sale of expensive SUV's increasing insurance premiums

    5. 1.5 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Technological Innovations in Malaysia Motor Insurance Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Insurance Type

      1. 2.1.1 Third Party Liability

      2. 2.1.2 Comprehensive

    2. 2.2 Distribution channel

      1. 2.2.1 Agents

      2. 2.2.2 Brokers

      3. 2.2.3 Banks

      4. 2.2.4 Online

      5. 2.2.5 Other Distribution Channels

Malaysia Motor Insurance Market Size FAQs

The Malaysia Motor Insurance Market is projected to register a CAGR of 1.5% during the forecast period (2024-2029)

Allianz, Pacific Orient, RHB Insurance, Takaful Malaysia and Etiqa Malaysia are the major companies operating in the Malaysia Motor Insurance Market.

Malaysia Motor Insurance Market Report Snapshots

Malaysia Motor Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)