PIAM: Motor and EV Insurance Up 6.7% in 2024

Malaysia’s General Insurance (GI) industry continued its upward trajectory in 2024, with motor insurance L as the key growth driver, touts the General Insurance Association of Malaysia (PIAM).

As reported by Bernama, PIAM highlighted that the motor insurance segment contributed the largest share of total gross written premium, rising 6.7% year-on-year to RM651.1 million in additional premiums. This growth was supported by a 2.1% increase in new vehicle registrations, as reported by the Malaysian Automotive Association (MAA).

Overall, the GI industry recorded a 6.9% increase in gross written premiums, reaching RM23.1 billion in 2024.

The recovery in vehicle sales and strong demand in motor, fire, and transit insurance segments were key contributors to this performance, despite ongoing global economic uncertainties and inflationary pressures.

Looking ahead however, PIAM noted that 2025 will bring further emphasis on sustainable underwriting practices and innovation in EV insurance, in line with evolving consumer needs and regulatory expectations.

The sector is also expected to build greater resilience against climate-related risks.

While interest in natural catastrophe coverage is growing, medical cost inflation remains a concern, with projections rising to 16.4% in 2025 - well above the Asia-Pacific average of 10%.

Despite challenges such as rising reinsurance costs and increased frequency of weather-related events (special perils), PIAM maintained that Malaysia’s motor insurance segment remains strong and continues to anchor the industry's growth prospects.