Malaysia’s general insurance industry climbs 7.3% YoY in 1H23

Underwriting profit saw a huge drop of 37.8% mainly due to motor and fire lines.

In the first half of 2023 (1H23), Malaysia’s general insurance industry saw a 7.3% rise in gross direct premiums to RM10.5b. However, underwriting profit contracted by 37.8% to RM0.5b, attributable to Motor and Fire lines, Persatuan Insurans Am Malaysia (PIAM) data showed.

Motor, comprising 44% of total premiums, experienced an underwriting loss of RM54m, with a net claims ratio of 67.1%. 

Fire, with an 8% premium increase to RM2.11b, faced a decline in profit due to inflation, tariff adjustments, competition, and increased flood events.

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Marine Aviation and Transit (MAT) grew by 3.5%, while Miscellaneous classes surged by 15.6%, driven by Construction All Risk (CAR) & Engineering. 

Personal Accident (PA) premiums dropped by 15.5%, aligning with pre-pandemic levels. Medical and Health Insurance (MHI) showed a 15.2% premium growth.

Flood events in 2022 caused RM622.4m in losses, impacting Fire lines. Flood awareness led to increased optional coverage, with Motor and Fire portfolios experiencing a 2% rise in take-up rates. 

The industry settled nearly RM23m daily in insurance claims, witnessing a 23% increase in daily payouts in H1 2023, primarily driven by Motor claims.