Malaysia Motor Insurance Market Size
| Study Period | 2019 - 2028 |
| Base Year For Estimation | 2022 |
| Forecast Data Period | 2024 - 2028 |
| Historical Data Period | 2019 - 2021 |
| CAGR | 1.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Malaysia Motor Insurance Market Analysis
Malaysia Motor Insurance Market has generated a revenue of USD 1840 Million 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. Based on the facts from the Islamic Financial Services Board (IFSB), Malaysia has the major Islamic banking assets outside of the Middle East in the third quarter of 2021 (3Q2020). IFSB also pointed out that Malaysia remained one of the concentrations of Islamic Fund Assets, constituting 28.3% of the total asset under management (AUM) in 2020.
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 in the country, reiterated the member insurance companies to run during the COVID-19 pandemic. This was required for coverage by the hospital and surgical insurance (HSI), travel insurance, and motor insurance services.
Further, 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 period owing to the low sales of new motor vehicles in 2020 as well as in 2021 during the first quarter of the year. In 2020, the amount of gross written premiums in the motor insurance sector of Malaysia amounted to approximately 8.4 billion Malaysian ringgit. That year, the motor insurance sector continued leading the general insurance market.
The Malaysia 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.
Before 2016, the price of motor coverage was monitored by the Bank Negara Malaysia, the country’s central bank, which would issue lists of fixed premiums and policy wordings insurers were allowed to sell. It allowed market-based pricing of comprehensive and third-party insurance policies besides permitting new product offerings.
In 2019, there were 66 new product launches in motor insurance the highest among all lines of general insurance business. Moving away from the tariff-based system in motor insurance allowed the introduction of policy pricing set by providers and predicated on customer risk profiles the same free-market-based system seen elsewhere in developed countries. As a result, there was a decline in the average premium price paid.
Malaysia Motor Insurance Market Trends
This section covers the major market trends shaping the Malaysia Motor Insurance Market according to our research experts:
Consistency in the Development of Motor Insurance
The Phased Liberalization of the Motor Tariff has increased steadily momentum since it took effect in 2016, and companies have been constantly introducing new and innovative products to better serve customers and meet their various protection needs. The industry keenly anticipates further liberalization and looks forward to the full market opening.
The country confirmed this by setting fixed premium and takaful (a type of Islamic insurance wherein members pay money into a pool system to guarantee each other against loss or damage.) contribution rates based on the model, age, and cubic capacity of each vehicle.
This year, the motor insurance sector continued to dominate the general insurance market. Moreover, motor insurers could look forward to a better business environment as pricing gets completely liberalized.
Sales in private and commercial vehicle segment is driving the market
As required by law in Malaysia, vehicle insurance recorded a contraction of 56% of the overall general insurance Net Earned Premium (NEP) at the end of 2019, which is more than half of the insurance NEP in Malaysia. The Malaysian motor insurance earned premium is expected to increase steadily.
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.
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 Great Eastern Life Assurance (Malaysia) Berhad, Etiqa General Takaful Berhad, Allianz Malaysia Berhad., Syarikat Takaful Malaysia Berhad and Amgeneral Insurance Berhad
Malaysia Motor Insurance Market Leaders
Great Eastern Life Assurance (Malaysia) Berhad
Etiqa General Takaful Berhad
Allianz Malaysia Berhad.
Syarikat Takaful Malaysia Berhad
Amgeneral Insurance Berhad
*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
4.2 Market Drivers
4.3 Market Restraints
4.4 Insights on Various Regulatory Trends Shaping the Market
4.5 Insights on impact of technology in the Market
4.6 Industry Attractiveness - Porters' Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 Insurance Type
5.1.1 Third Party Liability
5.1.2 Comprehensive
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
6.2 Company Profiles
6.2.1 Great Eastern Life Assurance (Malaysia) Berhad
6.2.2 Etiqa General Takaful Berhad
6.2.3 Allianz Malaysia Berhad.
6.2.4 Syarikat Takaful Malaysia Berhad
6.2.5 Amgeneral Insurance Berhad
6.2.6 Msig Insurance (Malaysia) Bhd
6.2.7 Liberty Insurance Malaysia Berhad
6.2.8 AIA BHD.
6.2.9 Zurich Life Insurance Malaysia Berhad
6.2.10 Rhb Insurance Berhad*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Malaysia Motor Insurance Industry Segmentation
This report aims to offer a detailed analysis of the Malaysian Motor Insurance Market. It aims at the market dynamics, emerging trends in the segments and regional markets, and insights into various product and application types. Also, it focuses on the key players and the competitive landscape in the market. 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 (2023-2028).
Who are the key players in Malaysia Motor Insurance Market?
Great Eastern Life Assurance (Malaysia) Berhad, Etiqa General Takaful Berhad, Allianz Malaysia Berhad., Syarikat Takaful Malaysia Berhad and Amgeneral Insurance Berhad are the major companies operating in the Malaysia Motor Insurance Market.
Malaysia Motor Insurance Industry Report
Statistics for the 2023 Malaysia Motor Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Malaysia Motor Insurance analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
