Report Overview

Malaysia Motor Insurance Market – Industry Trends & Forecast Report, 2030

Malaysia Motor Insurance Market size by value was estimated at USD 1.89 billion in 2023. During the forecast period between 2024 and 2030, Malaysia Motor Insurance Market size is expected to expand at a CAGR of 1.70% reaching a value of USD 2.12 billion by 2030. The growth of Malaysia Motor Insurance Market is driven by several key factors, including the increasing number of vehicles on the road, rising disposable income, and strict regulations mandating motor insurance. Additionally, economic development, technological innovations, and supportive government initiatives play significant roles. The adoption of digital insurance platforms and the phased liberalization of motor tariffs, which introduced risk-based pricing, have also contributed to market expansion.

Motor Insurance – Overview

Motor insurance is a contract between a vehicle owner and an insurance company, providing financial protection against losses due to accidents, theft, or natural disasters. It covers damages to the insured vehicle and liabilities towards third parties. Policies typically include liability, collision, and comprehensive coverage. Motor insurance is mandatory in many regions to ensure financial responsibility and protect all road users. Additional benefits may include roadside assistance and coverage for medical expenses.

Malaysia Motor Insurance Market   

Growth Drivers

Increasing Awareness about Benefits of Motor Insurance Products

Growing awareness about the importance of motor insurance is a significant driver for Malaysia Motor Insurance Market. Consumers are increasingly recognizing the financial protection and security that insurance policies offer against accidents, theft, and natural disasters. Educational campaigns by insurers and government initiatives have played a crucial role in enhancing this awareness. Additionally, the rise of digital platforms has made it easier for consumers to access information and purchase insurance policies online, further boosting the growth of Malaysia Motor Insurance Market.

Challenges

Fraudulent Claims

Fraudulent claims significantly impact Malaysia Motor Insurance Market, costing insurers around MYR 1 billion annually. These activities, including staged accidents and inflated claims, increase operational costs and lead to higher premiums for genuine policyholders. Insurers are adopting advanced technologies like telematics and artificial intelligence to detect and mitigate fraud. Despite these efforts, fraudulent claims remain a persistent challenge, affecting the profitability and stability of the motor insurance sector.

Impact of Escalating Geopolitical Tensions on Malaysia Motor Insurance Market  

Escalating geopolitical tensions, such as Russia-Ukraine war and conflicts in Israel-Palestine, have significantly impacted Malaysia Motor Insurance Market. These tensions have led to supply chain disruptions, affecting vehicle production and increasing repair costs. Consequently, insurance premiums have risen due to higher claims and operational costs. Additionally, heightened uncertainties have prompted insurers to adopt more conservative risk assessments, potentially limiting coverage options. The overall economic instability has also influenced consumer spending, leading to fluctuations in policy renewals and new purchases. Despite these challenges, insurers are leveraging advanced technologies and strategic partnerships to navigate the complex landscape.

Malaysia Motor Insurance Market

Segmental Information  

Malaysia Motor Insurance Market – By Policy Type

By policy type, Malaysia Motor Insurance Market is divided into Third Party Liability Insurance, Comprehensive Coverage, Collision Coverage, and other (Fire & Theft Motor Insurance) segments. The comprehensive coverage segment is the largest policy type in Malaysia Motor Insurance Market, as it offers extensive protection, covering damages to both the insured vehicle and third-party liabilities. Most vehicle owners prefer comprehensive coverage due to its all-inclusive nature, which includes theft, fire, and various forms of accidental damage. Its broad protection scope and the higher perceived value it provides make it the leading segment in Malaysia's motor insurance landscape.

Malaysia Motor Insurance Market – By Vehicle Age

Based on vehicle age, Malaysia Motor Insurance Market is divided into New Vehicles and Old Vehicles segments. The old vehicles segment holds a larger market share of Malaysia Motor Insurance Market by vehicle age. The segment is driven by the high number of older vehicles on the roads, as many consumers in Malaysia tend to retain their vehicles for extended periods due to economic factors. The insurance demand for older vehicles is significant, reflecting the need for coverage against potential damages and repairs, which are more likely in older models compared to new vehicles that often come with manufacturer warranties.

Malaysia Motor Insurance Market – By Vehicle Type

On the basis of vehicle type, Malaysia Motor Insurance Market is divided into Passenger Vehicles and Commercial Vehicles segments. The passenger vehicles segment accounts for a larger market share of Malaysia Motor Insurance Market by vehicle type, due to the higher number of passenger vehicles on the road, leading to increased demand for motor insurance. The widespread ownership of passenger cars among individuals and families drives the growth of the segment. Additionally, the mandatory insurance requirements for passenger vehicles further contribute to its prominence within the market compared to the commercial vehicles segment.

Competitive Landscape

Key players in the highly competitive Malaysia Motor Insurance Market include Malaysia Life Ltd, MSIG Insurance (Malaysia) Pte Ltd, Tokio Marine Life Insurance Malaysia Ltd, Etiqa Insurance Pte Ltd, The Great Eastern Life Assurance Company Ltd, Liberty Insurance Pte Ltd, United Overseas Insurance Ltd, Ecics Limited, AXA Insurance Pte Ltd, Auto & General Insurance (Malaysia) Pte Ltd, and AVIVA Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Policy Type

• Third-party Liability Insurance

• Comprehensive Coverage

• Collision Coverage

• Others (Fire & Theft Motor Insurance)

By Vehicle Age

• New Vehicles

• Old Vehicles

By Vehicle Type

• Passenger Vehicles

• Commercial Vehicles

By Distribution Channel

• Insurance Agents/Brokers

• Direct Response

• Banks

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Malaysia Motor Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising vehicle ownership
         2. Regulatory mandates in Malaysia
         3. Increasing awareness of insurance
      2. Restraints
         1. High unemployment rate
         2. Economic instability
         3. Fraudulent claims
      3. Opportunities
         1. Untapped market segments
         2. Increasing focus on value-added services
         3. Growth of digital distribution channels
      4. Challenges
         1. Balancing competitive pricing with maintaining profitability
         2. Growing number of extreme weather events
   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 Motor Insurance Market, Pricing Analysis
5. Malaysia Motor Insurance Market: Marketing Strategies
6. Malaysia Motor Insurance Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Policy Type
         1. Third-party Liability Insurance
         2. Comprehensive Coverage
         3. Collision Coverage
         4. Others (Fire & Theft Motor Insurance)
      2. By Vehicle Age
         1. New Vehicles
         2. Old Vehicles
      3. By Vehicle Type
         1. Passenger Vehicles
         2. Commercial Vehicles
      4. By Distribution Channel
         1. Insurance Agents/Brokers
         2. Direct Response
         3. Banks
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Malaysia Motor Insurance Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
8. Impact of Escalating Geopolitical Tensions on Malaysia Motor Insurance Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Malaysia Life Ltd
   2. MSIG Insurance (Malaysia) Pte Ltd
   3. Tokio Marine Life Insurance Malaysia Ltd
   4. Etiqa Insurance Pte Ltd
   5. The Great Eastern Life Assurance Company Ltd
   6. Liberty Insurance Pte Ltd
   7. United Overseas Insurance Ltd
   8. Ecics Limited
   9. AXA Insurance Pte Ltd
   10. Auto & General Insurance (Malaysia) Pte Ltd
   11. AVIVA Ltd
   12. Other Prominent Players
10. Key Strategic Recommendations
11. 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
    5. Assumption & Limitation

*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 Motor Insurance Market Segmentation

Figure 2   Malaysia Motor Insurance Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2023

Figure 4   Malaysia Motor Insurance Market Size, By Value (USD Billion), 2019–2030

Figure 5   Malaysia Motor Insurance Market Share, By Policy Type, By Value (USD Billion) 2019–2030

Figure 6   Malaysia Motor Insurance Market Share, By Vehicle Age, By Value (USD Billion) 2019–2030

Figure 7   Malaysia Motor Insurance Market Share, By Vehicle Type, By Value (USD Billion) 2019–2030

Figure 8   Malaysia Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2030

List of Tables

Table 1      Malaysia Motor Insurance Market Size, By Policy Type, By Value (USD Billion) 2019–2030

Table 2      Malaysia Motor Insurance Market Size, By Vehicle Age, By Value (USD Billion) 2019–2030

Table 3    Malaysia Motor Insurance Market Share, By Vehicle Type, By Value (USD Billion) 2019–2030

Table 4    Malaysia Motor Insurance Market Share, By Distribution Channel, By Value (USD Billion) 2019–2030

Table 5      Malaysia Life Ltd Company Overview

Table 6      Malaysia Life Ltd Financial Overview

Table 7      MSIG Insurance (Malaysia) Pte Ltd Company Overview

Table 8      MSIG Insurance (Malaysia) Pte Ltd Financial Overview

Table 9      Tokio Marine Life Insurance Malaysia Ltd Company Overview

Table 10    Tokio Marine Life Insurance Malaysia Ltd Financial Overview

Table 11    Etiqa Insurance Pte Ltd Company Overview

Table 12    Etiqa Insurance Pte Ltd Financial Overview

Table 13    The Great Eastern Life Assurance Company Ltd Company Overview

Table 14    The Great Eastern Life Assurance Company Ltd Financial Overview

Table 15    Liberty Insurance Pte Ltd Company Overview

Table 16    Liberty Insurance Pte Ltd Financial Overview

Table 17    United Overseas Insurance Ltd Company Overview

Table 18    United Overseas Insurance Ltd Financial Overview

Table 19    Ecics Limited Company Overview

Table 20    Ecics Limited Financial Overview

Table 21    AXA Insurance Pte Ltd Company Overview

Table 22    AXA Insurance Pte Ltd Financial Overview

Table 23    Auto & General Insurance (Malaysia) Pte Ltd Company Overview

Table 24    Auto & General Insurance (Malaysia) Pte Ltd Financial Overview

Table 25    AVIVA Ltd Company Overview

Table 26    AVIVA Ltd Financial Overview