Malaysia’s general insurance industry recorded a higher underwriting profit in 2025, supported by premium growth and improved performance in non-motor business lines, according to data released by the General Insurance Association of Malaysia (PIAM).
The sector achieved an underwriting profit of RM1.2 billion in 2025, representing an increase of 12.1% compared with RM1.04 billion in 2024. This rise reflects stronger underwriting results, particularly in fire, personal accident, and marine, aviation and transit (MAT) insurance segments.
During the same period, the industry’s gross written premiums (GWP) rose by 4.8% year-on-year to RM24.2 billion, compared with RM23.1 billion in 2024. The growth was primarily driven by the motor and fire insurance segments, which remain the largest contributors to the overall portfolio.
Key financial indicators (2025)
| Indicator | 2025 Value | Year-on-year change |
|---|---|---|
| Underwriting profit | RM1.2 billion | +12.1% |
| Gross written premiums | RM24.2 billion | +4.8% |
| 2024 underwriting profit | RM1.04 billion | — |
| 2024 gross written premiums | RM23.1 billion | — |
Segment performance
Motor insurance continued to dominate the market, accounting for approximately 45.2% of total premiums. However, it remained loss-making due to high claims costs and operational expenses, with an underwriting loss of RM289.3 million reported for the year. Rising claims frequency and increased vehicle repair costs were key contributing factors.
In contrast, non-motor segments delivered stronger results. Fire insurance, the second-largest business line, contributed significantly to profitability, alongside MAT and personal accident insurance. These segments benefited from healthier claims ratios and improved underwriting discipline.
Fire insurance alone accounted for a substantial share of industry profit, while MAT and personal accident lines also remained in positive territory, helping offset weaknesses in the motor segment.
Market composition
The structure of Malaysia’s general insurance industry remained broadly stable in 2025. Motor insurance retained its position as the largest class of business, followed by fire insurance, while smaller segments such as personal accident and MAT contributed moderate but growing shares of premiums.
Overall, the industry recorded steady premium expansion alongside improved underwriting performance, reflecting continued focus on pricing discipline and risk management across insurers.
The 2025 results indicate that, despite ongoing pressures in motor insurance, particularly from claims inflation, the broader sector maintained profitability growth driven by diversification and stronger non-motor underwriting outcomes.
