Health insurance - Malaysia | Statista Market Forecast

The Health insurance market market in Malaysia is projected to reach a market size (gross written premium) of US$915.80m in 2024.
The average spending per capita in the Health insurance market market is expected to amount to US$26.41 in 2024.
Furthermore, the gross written premium is projected to show an annual growth rate (CAGR 2024-2029) of 3.67%, resulting in a market volume of US$1.10bn by 2029.
When compared globally, the United States is expected to generate the highest gross written premium, reaching US$1.7tn in 2024.
The rising demand for comprehensive health insurance plans in Malaysia is driven by the increasing awareness of the importance of healthcare and the need for financial protection against medical expenses.

Definition:

Health insurance is a financial arrangement in which individuals or groups pay regular premiums to a provider, typically an insurance company. In exchange for these premiums, the insurer offers coverage and financial assistance for various healthcare-related costs, including but not limited to medical consultations, hospitalization, prescription medications, and other medical services. According to our current definition, the health insurance market includes voluntary health insurances.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Voluntary health insurance contributions

Compulsory health insurance contributions
Government schemes
Out-of-pocket payments
Reinsurance

Over the past decade, the Health insurance market in Malaysia has experienced significant growth and transformation.

Customer preferences: Customers in Malaysia are increasingly seeking comprehensive health insurance coverage to safeguard themselves against rising healthcare costs and ensure access to quality medical services. There is a growing demand for health insurance plans that offer not only basic coverage but also additional benefits such as wellness programs, outpatient services, and coverage for critical illnesses.

Trends in the market: One of the key trends in the Malaysian health insurance market is the shift towards digitalization. Insurers are leveraging technology to streamline the customer experience, from online policy purchases to digital claims processing. Additionally, there is a rising trend of customization in health insurance products, with insurers offering tailored plans to cater to the specific needs of different customer segments. Another notable trend is the increasing popularity of health insurance packages that include coverage for alternative treatments such as traditional medicine and holistic therapies.

Local special circumstances: In Malaysia, the dual healthcare system comprising both public and private healthcare facilities influences the health insurance market. Customers often opt for private healthcare services due to perceived higher quality and shorter wait times, driving the demand for private health insurance. Moreover, the government's initiatives to promote private sector participation in healthcare delivery further contribute to the growth of the health insurance market in the country.

Underlying macroeconomic factors: The steady economic growth in Malaysia has led to an increase in disposable income levels, enabling more individuals to afford health insurance coverage. The country's rapidly aging population and changing disease patterns also play a role in driving the demand for health insurance, as people seek financial protection against age-related illnesses and non-communicable diseases. Additionally, regulatory developments and government policies aimed at expanding healthcare access and improving the overall quality of healthcare services contribute to the growth of the health insurance market in Malaysia.

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.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.