Malaysia Motor Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 1.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Malaysia Motor Insurance Market Analysis
Malaysia's Motor Insurance Market has generated a gross written premium of USD 1.92 Billion in the current year and is poised to achieve a CAGR of 1.5% for the forecast period. Malaysia is one of the leading global Islamic Capital Market (ICM) hubs. Malaysia has the major Islamic banking assets outside of the Middle East during the pandemic. Third-party insurance coverage is the most basic vehicle insurance policy existing in Malaysia. With a phased liberalization of Malaysia motor insurance fixed tariffs are swapped by risk-based pricing changing the way insurers operate.
The Life Insurance Association of Malaysia (LIAM), The General Insurance Association of Malaysia (PIAM), and the Malaysian Takaful Association (MTA), which have power over the insurance sector, reiterated the member insurance companies to run during the COVID-19 pandemic. With pandemic restrictions, most of the insurance renewals were carried out online to ensure the safety of the customers during the pandemic. The new motor insurance premiums declined during the pandemic owing to the low sales of new motor vehicles despite this the amount of gross written premiums in the motor insurance sector of Malaysia amounted to 8.4 billion Malaysian ringgit leading the general insurance market.
The Malaysian motor insurance market is likely to increase after a phased liberalization development, which switched fixed tariffs for risk-based pricing and remains unchanged in the way insurers operate. Rising digital insurance facilities are expected to increase insurance penetration in malaysian market and to drive motor insurance market as well.
Malaysia Motor Insurance Market Trends
Phase Liberalization Of The Industry And New Insurance Products
The phased liberalization of the Motor Tariff in Malaysia has resulted in companies constantly introducing new and innovative motor insurance products to better serve customers and meet their various protection needs. The industry is keenly anticipating further liberalization and looking forward to the full market opening for competitive players.
Innovative insurance products with increasing partnerships among the market players are leading to the expansion of the motor insurance industry in Malaysia. Recently Policy Street, an innovative insurance solutions provider, and CARSOME, Southeast Asia's largest integrated car e-commerce platform launched a product providing personal accident coverage with added features including protection against unemployment, ensuring free car loan payments in case the policyholder loses their job. These innovative products are leading to rising motor insurance premiums in the region.
Rising Sales Of Vehicle Driving The Market
The two main insurance sectors in the insurance sector are fire and the automobile. Consequently, the auto insurance sector is the largest class in the insurance sector. The increase in new vehicle sales, in both the private and commercial vehicle segments, contributed to the 1.8% growth in motor insurance recorded gross written premium.
Sales of passenger cars in Malaysia are observing a recovery in unit sales post rising to 638.56 thousand sales last year with SUVs, Small cars, Mini, and medium cars occupying the largest segment of the market. Last year, there were 33.3 million registered vehicles in Malaysia of which 47.3 percent were cars, 46.6 percent were motorcycles and 4.7 percent were goods vehicles. versus the human population, which stood at 32.6 million.
Malaysia Motor Insurance Industry Overview
The report covers the major key players operating in the Malaysian Motor Insurance Market. The market is fragmented, and the market is expected to increase during the forecast period due to the year-on-year expansion of motor insurance. Many other factors are also driving the market. It has major players Allianz, Pacific Orient, RHB Insurance, Takaful Malaysia and Etiqa Malaysia
Malaysia Motor Insurance Market Leaders
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Allianz
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Pacific Orient
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RHB Insurance
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Takaful Malaysia
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Etiqa Malaysia
*Disclaimer: Major Players sorted in no particular order
Malaysia Motor Insurance Market News
- In 2022, the General Insurance Association of Malaysia(PIAM) and Malaysian Takaful Association(MTA) launched the year-long PIAM-MTA 2022 nationwide Road Safety Campaign in Kuala Lumpur.
- In 2022, Etiqa General Insurance Bhd and Syarikat Takaful Malaysia Am Bhd (Takaful Malaysia) emerged as the winner at Motor Insurance and Takaful Award 2021/22, an annual honor for top Motor Insurance and Takaful companies in the country.
Malaysia Motor Insurance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Rising Sales of Motor Vehicles In The Region
- 4.2.2 Increasing competition among the players decreasing insurance price.
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4.3 Market Restraints
- 4.3.1 Fluctuating Inflation Rate affecting sales of Motor vehicle
- 4.3.2 Negative Impact of Covid On per capita Income in Malaysia
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4.4 Market Opportunities
- 4.4.1 Expansion of the Digital Insurance market driving motor insurance
- 4.4.2 Rise in sale of expensive SUV's increasing insurance premiums
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4.5 Industry Attractiveness - Porters' Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitutes
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Technological Innovations in Malaysia Motor Insurance Market
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 Insurance Type
- 5.1.1 Third Party Liability
- 5.1.2 Comprehensive
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5.2 Distribution channel
- 5.2.1 Agents
- 5.2.2 Brokers
- 5.2.3 Banks
- 5.2.4 Online
- 5.2.5 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concetration Overview
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6.2 Company Profiles
- 6.2.1 Allianz
- 6.2.2 Pacific Orient
- 6.2.3 RHB Insurance
- 6.2.4 Takaful Malaysia
- 6.2.5 Great Eastern Life
- 6.2.6 Zurich Malaysia
- 6.2.7 Liberty Insurance
- 6.2.8 Lonpac Insurance
- 6.2.9 Takaful IKLHAS
- 6.2.10 MSIG Malaysia*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
** Subject To AvailablityMalaysia Motor Insurance Industry Segmentation
A motor insurance policy is a mandatory policy issued by an insurance company as part of the prevention of public liability to protect the general public from any accident that might take place on the road.
The Malaysian Motor Insurance Market is segmented by Insurance Type (Third Party Liability and Comprehensive) and by Distribution Channel (Agents, Brokers, Banks, Online, and Other Distribution Channels). The report offers market size and forecast values for the Malaysia Motor Insurance Market in USD million for the above segments.
| Insurance Type | Third Party Liability |
| Comprehensive | |
| Distribution channel | Agents |
| Brokers | |
| Banks | |
| Online | |
| Other Distribution Channels |
Malaysia Motor Insurance Market Research FAQs
What is the current Malaysia Motor Insurance Market size?
The Malaysia Motor Insurance Market is projected to register a CAGR of 1.5% during the forecast period (2024-2029)
Who are the key players in Malaysia Motor Insurance Market?
Allianz, Pacific Orient, RHB Insurance, Takaful Malaysia and Etiqa Malaysia are the major companies operating in the Malaysia Motor Insurance Market.
What years does this Malaysia Motor Insurance Market cover?
The report covers the Malaysia Motor Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Malaysia Motor Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the emerging trends in the Malaysia Motor Insurance Market?
The emerging trends in the Malaysia Motor Insurance Market are a) Adoption of usage-based insurance programs b) Automation of claims processing and offering sustainable and electric vehicle coverage c) Consideration of Advanced Driver Assistance Systems (ADAS) and adopting eco-friendly practices
Malaysia Motor Insurance Industry Report
The Malaysia motor insurance market is experiencing significant market growth, driven by an increasing number of vehicles and heightened insurance awareness. The market overview reveals that key offerings include diverse policies like third-party liability and comprehensive insurance, available through agents, direct sales, and digital platforms. The market segmentation includes car insurance, motorcycle insurance, and commercial vehicle insurance.
The market leaders in this sector are focusing on leveraging digital transformation to streamline processes and enhance customer experiences. This competitive environment compels companies to offer customer-centric products, efficient claim processing, and eco-friendly practices to maintain and expand their market presence. The market review indicates that mandatory insurance requirements stabilize demand, while innovations like usage-based insurance align with consumer needs.
Industry reports and market data show that the sector thrives amidst challenges such as fraudulent claims, intense competition among car insurance companies in Malaysia, and rising operational costs. The market outlook and market predictions suggest sustained growth, supported by industry research and industry statistics. The industry analysis highlights the importance of digital advancements in fostering market value and industry trends.
For detailed statistics, market share, size, revenue growth rate, and a forecast outlook of the Malaysia Motor Insurance market, consider consulting industry reports from Mordor Intelligence™, which provide a comprehensive historical overview and are available as free report PDF downloads. The industry information and industry outlook emphasize the need for continuous innovation and adaptation to market trends and market forecast. The market segmentation and market overview provide insights into the diverse policies and distribution channels driving the market.
Overall, the Malaysia motor insurance market's growth rate is supported by robust industry research and market data, with a focus on enhancing customer experiences and leveraging digital transformation for sustained growth.
