Malaysia’s general insurance industry recorded RM 24.2 billion in Gross Written Premium (GWP) in 2025, representing a 4.8% increase from RM 23.1 billion in 2024. According to the General Insurance Association of Malaysia (PIAM), the industry also posted an underwriting profit of RM 1.2 billion, an improvement of RM 125 million year-on-year, while the overall
Despite the stronger overall performance, motor insurance remains a challenging segment for the industry. PIAM said motor insurance, which continues to be the largest general insurance line at 45.2% of total premiums, still recorded an underwriting loss of RM 289.3 million in 2025. Its combined ratio stood at 103%, which means claims payout exceeded premiums collected.
Motor insurance GWP reached RM 10.9 billion in 2025, growing by 5.0% year-on-year. However, this was slower than the 6.7% growth recorded in 2024. PIAM said private car claim frequency remained above 7% in 2025, while claim severity increased to RM 8,831 due to spare parts inflation.
According to PIAM, models such as the Proton X50 and X70 naturally showed higher claim frequency due to their popularity, particularly among younger drivers. The association also noted that spare parts inflation contributed to higher claim severity, notably for the Proton Saga and Proton X50.
