Motor Vehicle Insurance - Malaysia

The Motor Vehicle Insurance market market in Malaysia is expected to reach a market size (gross written premium) of US$3.16bn in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is projected to be US$91.20 in 2024.
Furthermore, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of -1.89%, leading to a market volume of US$2.88bn by 2029.
When compared globally, the United States is expected to generate the highest gross written premium of US$341.6bn in 2024.
Motor vehicle insurance in Malaysia is experiencing a surge in demand due to the country's growing middle class and increase in car ownership.

Definition:

Motor vehicle insurance, often referred to as auto insurance, is a type of coverage that offers financial protection to individuals who own or operate vehicles like cars, motorcycles, or trucks. When you have motor vehicle insurance, you pay regular premiums to an insurance company, and in return, the insurer helps cover the costs associated with accidents, damages, and injuries related to your vehicle. This insurance market is essential for providing security and financial assistance in case of accidents, ensuring that individuals can repair or replace their vehicles.

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.

Insurance of land motor vehicles

Accident insurance
Insurance for aerial vehicles
Insurance for watercraft
insurance for spacecraft
All other insurance types, such as life insurance and health insurance
Reinsurance

The Motor Vehicle Insurance market in Malaysia is experiencing significant growth and evolution.

Customer preferences: Customers in Malaysia are increasingly looking for motor vehicle insurance policies that offer comprehensive coverage at competitive prices. They are also showing a preference for insurance providers that offer convenient digital platforms for policy purchase and claims processing.

Trends in the market: One noticeable trend in the Malaysian Motor Vehicle Insurance market is the rise of usage-based insurance. This innovative approach utilizes telematics technology to track driver behavior, allowing insurance companies to offer more personalized and flexible insurance plans based on individual driving habits. Another trend is the increasing adoption of online aggregators, which provide customers with easy access to compare different insurance options and select the most suitable one.

Local special circumstances: In Malaysia, the Motor Vehicle Insurance market is influenced by the country's regulatory environment and infrastructure development. The government's initiatives to improve road safety and reduce accidents are driving the demand for insurance coverage. Additionally, the growing middle-class population and increasing urbanization are contributing to the expansion of the motor vehicle market, consequently boosting the demand for insurance products.

Underlying macroeconomic factors: The economic stability and steady GDP growth in Malaysia are supporting the development of the Motor Vehicle Insurance market. As disposable incomes rise and consumer purchasing power increases, more individuals are investing in vehicles, leading to a higher demand for insurance protection. Moreover, the competitive landscape among insurance providers and regulatory reforms are also shaping the market dynamics 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.

As the population of the United States grows, so too does the number of drivers on the road and thus the customer base for motor insurance. In 2022, there were over 280 million registered vehicles on the roads in the United States. Of those millions of registered vehicles, each year there are also millions of vehicle crashes. Road traffic fatalities in the U.S. peaked in 2021. So while many individuals feel secure in their vehicles, the statistics indicate the importance of automobile insurance and in most cases, auto insurance is required by law. Auto insurance is important because it not only covers any physical damage that may occur in an accident, but also any damage or injury that might be caused because of a vehicular accident or which may be done upon oneself or one’s vehicle by another vehicle or accident – a falling tree for example.