Report Overview

Malaysia General Insurance Market – Industry Trends & Forecast Report, 2029

Malaysia general insurance market size was estimated at USD 19.4 billion in 2022. During the forecast period between 2023 and 2029, the size of Malaysia general insurance market is projected to grow at a CAGR of 9% reaching a value of USD 32 billion by 2029.  Major factor driving the growth of Malaysia general insurance market is a growing demand for comprehensive coverage, particularly in sectors such as motor and property insurance. Also, the rise of digitalization has led to increased online distribution channels and the adoption of innovative technologies, including mobile applications and chatbots, to enhance customer experience and streamline operations. Further, there has been a shift towards personalized and usage-based insurance products, allowing customers to pay premiums based on their specific risk profiles and usage patterns. Regulatory developments, such as the introduction of risk-based capital frameworks, have aimed to strengthen the industry's resilience and ensure sustainable growth.

Malaysia General Insurance Market - Overview

General insurance, also known as non-life insurance, encompasses a wide range of insurance products designed to protect individuals, businesses, and assets from various risks. It provides coverage for events such as accidents, property damage, liability claims, theft, and natural disasters, among others. General insurance policies are typically short-term contracts that offer financial compensation or reimbursement for covered losses. Common types of general insurance include motor insurance, home insurance, travel insurance, health insurance, and business insurance. These policies are essential for safeguarding against unexpected events and mitigating financial risks, ensuring peace of mind and financial security for policyholders.

Growth Drivers

Adoption of Technological Advancements

In recent years, the increasing adoption of technological advancements has emerged as a significant growth driver for the Malaysia general insurance market. The integration of cutting-edge technologies such as artificial intelligence (AI), machine learning, and data analytics has revolutionized the insurance industry, leading to improved operational efficiency and enhanced customer experiences. Insurers are leveraging these technologies to automate claim processing, underwriting, and risk assessment, streamlining operations and reducing costs. Digital platforms and mobile applications have also made insurance products more accessible and convenient for consumers, expanding market reach. With increasing digital literacy and smartphone penetration in Malaysia, the incorporation of technology is expected to further accelerate the growth of the general insurance sector in the country.

Restraints

Regulatory Challenges

In the dynamic landscape of Malaysia's general insurance market, regulatory constraints pose a significant restraint to sustained growth. As the sector expands rapidly, insurance providers face mounting compliance requirements and increasing scrutiny from regulatory authorities. Stricter guidelines on capital adequacy, risk management, and consumer protection demand substantial investments and meticulous adherence. Balancing innovation and profitability with regulatory compliance becomes a delicate tightrope for insurers. Also, the evolving digital landscape and emerging technologies present novel challenges in ensuring data security and privacy, further straining market participants. With regulatory complexities on the rise, stakeholders must navigate this intricate environment to foster a resilient and prosperous general insurance industry in Malaysia.

Impact of COVID-19 on Malaysia General Insurance Market

The COVID-19 pandemic significantly impacted Malaysia general insurance market. The outbreak resulted in a sharp decline in economic activity and disrupted various sectors, including insurance. With the implementation of lockdowns and movement restrictions, the demand for insurance products, such as motor and travel insurance, decreased significantly. Also, the pandemic introduced new risks and uncertainties, leading to a surge in claims related to health and business interruptions. Insurers faced challenges in underwriting risks and managing their portfolios amidst the uncertain environment. The market experienced a slowdown in premium growth, reduced profitability, and increased pressure on solvency ratios. Insurers had to adapt their operations and products to cater to changing customer needs and mitigate the impact of the pandemic on their businesses.

Malaysia General Insurance Market

Segmental Coverage

Malaysia General Insurance Market – By Product Type

On the basis of product type, Malaysia general insurance market is divided into Property Insurance, Motor Insurance, Liability Insurance, Marine, Aviation, Transit Insurance, Personal Accident & Health Insurance, and Miscellaneous Insurance segments. The motor insurance segment is the highest contributor to the Malaysia general insurance market. Motor Insurance covers vehicles against damages, theft, and accidents. Given Malaysia's significant vehicle population and the mandatory requirement for motor insurance, this segment holds a substantial market share. It encompasses various types of motor insurance policies, including comprehensive coverage, third-party liability coverage, and personal accident coverage. The demand for motor insurance is driven by factors such as increasing vehicle ownership, rising awareness of insurance protection, and regulatory requirements. The Motor Insurance segment plays a vital role in the overall insurance market in Malaysia, contributing significantly to its growth and revenue.

Malaysia General Insurance Market – By Distribution Channel

Based on distribution channel, Malaysia general insurance market is divided into Agency distribution, Direct Sales, Bancassurance, Brokers, and Digital Platforms segments. Agency distribution is the largest distribution channel. Agency distribution refers to the traditional method of selling insurance policies through independent agents or agencies. These agents act as intermediaries between insurance companies and customers, providing personalized advice and assistance in selecting insurance coverage. Agency distribution has been a prominent and well-established channel in Malaysia, accounting for a significant portion of insurance sales. However, it is worth noting that with the emergence of digital platforms and the increasing use of technology, the landscape of the insurance market is evolving, and other segments such as Direct sales, Bancassurance, Brokers, and Digital Platforms are also gaining traction.

Competitive Landscape

Major players in the Malaysia general insurance market include Allianz General Insurance Company (Malaysia) Berhad, AmGeneral Insurance Berhad, MSIG Insurance (Malaysia) Berhad, Lonpac Insurance Berhad, Etiqa General Insurance Berhad, Axa Affin General Insurance Berhad, Tokio Marine Insurance (Malaysia) Berhad, Zurich General Insurance Malaysia Berhad, Berjaya Sompo Insurance Berhad, and MPI Generali Insurans Berhad. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

By Product Type

• Property Insurance

• Motor Insurance

• Liability Insurance

• Marine, Aviation, and Transit Insurance

• Personal Accident and Health Insurance

• Miscellaneous Insurance

By Distribution Channel

• Agency distribution

• Direct sales

• Bancassurance

• Brokers

• Digital Platforms

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Malaysia General Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing awareness and understanding of insurance products among consumers
         2. Increasing risk consciousness and the need for protection against unforeseen events
      2. Restraints
         1. Price sensitivity and price competition in the insurance market
         2. Regulatory constraints and compliance requirements
      3. Opportunity
         1. Rising adoption of digital channels and insurance solutions
      4. Challenges
         1. Intense competition among insurers in the market
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Malaysia General Insurance Market Overview
   1. Market Size & Forecast (TAM) by Value, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
         1. Property Insurance
         2. Motor Insurance
         3. Liability Insurance
         4. Marine, Aviation, and Transit Insurance
         5. Personal Accident and Health Insurance
         6. Miscellaneous Insurance
      2. By Distribution Channel
         1. Agency distribution
         2. Direct sales
         3. Bancassurance
         4. Brokers
         5. Digital Platforms
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Malaysia General Insurance Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, and others)
6. Impact of Covid-19 on Malaysia General Insurance Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
   1. Allianz General Insurance Company (Malaysia) Berhad
   2. AmGeneral Insurance Berhad
   3. MSIG Insurance (Malaysia) Berhad
   4. Lonpac Insurance Berhad
   5. Etiqa General Insurance Berhad
   6. Axa Affin General Insurance Berhad
   7. Tokio Marine Insurance (Malaysia) Berhad
   8. Zurich General Insurance Malaysia Berhad
   9. Berjaya Sompo Insurance Berhad
   10. MPI Generali Insurans Berhad
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumptions & Limitations

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1 Malaysia General Insurance Market   Segmentation

Figure 2 Malaysia General Insurance Market   Value Chain Analysis

Figure 3 Company Market Share Analysis, 2022

Figure 4 Malaysia General Insurance Market   Size, By Value (USD Billion), 2019−2029

Figure 5 Malaysia General Insurance Market   Share, By Product Type, By Value, 2019−2029

Figure 6 Malaysia General Insurance Market   Share, By Distribution Channel, By Value, 2019−2029

List of Tables

Table 1      Malaysia General Insurance Market   Size, By Product Type, By Value, 2019−2029

Table 2      Malaysia General Insurance Market   Size, By Distribution Channel, By Value, 2019−2029

Table 3      Allianz General Insurance Company (Malaysia) Berhad

Table 4      Allianz General Insurance Company (Malaysia) Berhad

Table 5      AmGeneral Insurance Berhad Company Overview

Table 6      AmGeneral Insurance Berhad Financial Overview

Table 7      MSIG Insurance (Malaysia) Berhad Company Overview

Table 8      MSIG Insurance (Malaysia) Berhad Financial Overview

Table 9      Lonpac Insurance Berhad Company Overview

Table 10    Lonpac Insurance Berhad Financial Overview

Table 11    Etiqa General Insurance Berhad Company Overview

Table 12    Etiqa General Insurance Berhad Financial Overview

Table 13    Axa Affin General Insurance Berhad Company Overview

Table 14    Axa Affin General Insurance Berhad Financial Overview

Table 15    Tokio Marine Insurance (Malaysia) Berhad Company Overview

Table 16    Tokio Marine Insurance (Malaysia) Berhad Financial Overview

Table 17    Zurich General Insurance Malaysia Berhad Company Overview

Table 18    Zurich General Insurance Malaysia Berhad Financial Overview

Table 19    Berjaya Sompo Insurance Berhad Company Overview

Table 20    Berjaya Sompo Insurance Berhad Financial Overview

Table 21    MPI Generali Insurans Berhad Company Overview

Table 22    MPI Generali Insurans Berhad Financial Overview