General insurance market set to expand 6.6 per cent annually to 2029 — GlobalData

MALAYSIA’S general insurance industry is expected to grow at a compound annual growth rate (CAGR) of 6.6 per cent from RM24.6 billion in 2025 to RM31.8 billion by 2029 in gross written premiums (GWP), according to market intelligence firm GlobalData.

The company attributed this growth to increased premium rates across insurance segments, strong demand for natural catastrophe cover, economic recovery, rising vehicle sales, and mounting healthcare expenses.

“Motor, property, and personal accident and health (PA\&H) insurance lines contributed 82.6 per cent of the general insurance GWP in 2024,” GlobalData said in a statement.

Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, said regulatory efforts to deepen market development and insurance penetration would be key to supporting industry expansion.

“The rising traffic accident rate and increasing frequency of natural disasters will support higher policy uptake and premium growth in the industry,” he said.

The introduction of the Risk-Based Capital 2 (RBC2) framework in January 2027 is expected to further bolster the sector, strengthening insurer resilience and improving consumer confidence.

On the health insurance front, Sahoo noted that surging medical costs and a heightened public focus on well-being would continue to drive demand.

“Premium rates will continue to increase in the presence of the ageing society, rising non-communicable diseases, and a strained public healthcare system,” he added, forecasting PA\&H insurance to grow at a CAGR of 7.6 per cent between 2025 and 2029.

GlobalData also noted that other general insurance segments, such as financial lines, liability, and marine, aviation, and transit (MAT) insurance, are projected to make up the remaining 17.7 per cent of GWP in 2025.

“The growth of Malaysia’s general insurance market remains positive. Rising consumer awareness, regulatory developments, and the increasing frequency of natural disasters will play a pivotal role in shaping the industry’s trajectory over the next few years,” said Sahoo.

However, he cautioned that looming reciprocal tariffs from the United States could introduce uncertainties and shift market dynamics. - May 21, 2025