Malaysia’s motor insurance market is set for steady growth, with gross written premiums (GWP) projected to reach MYR14.7 billion (around US$3.3 billion) by 2030, according to recent estimates from GlobalData. This growth represents a compound annual growth rate (CAGR) of 6.0%, up from the expected MYR11.0 billion (US$2.5 billion) in premiums by 2025.
The sector’s expansion is driven by several key factors, including an ongoing recovery in the economy, rising vehicle sales, and increasing consumer awareness of the importance of comprehensive insurance coverage.
GlobalData forecasts that the motor hull segment will grow faster than motor vehicle liability in 2025, with growth rates of 6.4% and 4.2%, respectively.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, highlighted that the sector is experiencing significant shifts due to new technologies and changing customer expectations.
While growth is attributed to factors like rising vehicle sales and improved economic conditions, Sahoo noted that Malaysia’s motor insurance sector is facing challenges, especially as the rising traffic accident rate has led to a higher loss ratio for insurers between 2021 and 2024, impacting underwriting margins.
Recent data from the Malaysian Automotive Association (MAA) shows motor vehicle sales surpassed 800,000 units in 2024, marking a 2.1% increase from the previous year. The MAA projects further growth in vehicle sales in the latter half of 2025, which will likely continue to fuel expansion in the motor insurance market.
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