Life insurance - Malaysia | Statista Market Forecast

The Life insurance market market in Malaysia is expected to witness significant growth in the coming years.
According to projections, the market size, as measured by gross written premium, is set to reach US$14.03bn in 2024.
This indicates a positive trend and highlights the growing importance of Life insurance market in the country.
Furthermore, the average spending per capita in the Life insurance market market is projected to reach US$404.50 in 2024.
This figure showcases the willingness of individuals in Malaysia to invest in Life insurance market, indicating a favorable market environment.
Looking ahead, the Life insurance market market is expected to exhibit an annual growth rate, represented by a compound annual growth rate (CAGR) of 3.34% from 2024 to 2029.
This steady growth trajectory is anticipated to result in a market volume of US$16.53bn by 2029.
These numbers indicate a positive outlook for the Life insurance market industry in Malaysia, with potential opportunities for both insurers and consumers.
In a global perspective, it is worth noting that the United States is projected to generate the highest gross written premium in the Life insurance market market, amounting to US$1.3tn in 2024.
This serves as a benchmark for the industry and highlights the significant market share held by the United States in the global context.
Overall, the Life insurance market market in Malaysia is poised for growth, with increasing market size, per capita spending, and a positive growth rate.
These factors indicate a promising future for the Life insurance market sector in the country, presenting opportunities for both domestic and international players.
The life insurance market in Malaysia is experiencing a surge in demand due to the growing awareness and importance of financial protection among its population.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

Over the past decade, the Life insurance market in Malaysia has experienced steady growth and development.

Customer preferences: Customers in Malaysia are increasingly seeking life insurance products that offer not only financial protection but also investment opportunities. This shift in preferences can be attributed to the growing awareness of the importance of financial planning and wealth accumulation among the population.

Trends in the market: One notable trend in the Malaysian life insurance market is the rise of digital insurance platforms and InsurTech companies. These platforms offer convenience, transparency, and personalized services to customers, attracting a younger demographic who prefer digital solutions. Additionally, there is a growing demand for Shariah-compliant life insurance products in Malaysia, reflecting the country's predominantly Muslim population.

Local special circumstances: The regulatory environment in Malaysia plays a significant role in shaping the life insurance market. The introduction of regulatory frameworks such as the Financial Services Act and the Islamic Financial Services Act has helped enhance consumer protection and promote market stability. Moreover, the presence of both domestic and international insurance companies in the market fosters competition and innovation.

Underlying macroeconomic factors: The economic stability and steady GDP growth in Malaysia have contributed to the increasing demand for life insurance products. As the country continues to develop and urbanize, there is a greater need for long-term financial planning and protection against unforeseen circumstances. Additionally, the rising middle-class population and disposable incomes have fueled the growth of the life insurance market as more individuals seek to secure their financial future.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.