Market Insights Financial Insurances Non-life insurances

Motor Vehicle Insurance - Malaysia

Malaysia

The Motor Vehicle Insurance market market in Malaysia is expected to reach a market size (gross written premium) of US$3.15bn in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is projected to be US$90.78 in 2024.
Furthermore, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of -1.96%, leading to a market volume of US$2.91bn by 2028.
When compared globally, the United States is expected to generate the highest gross written premium of US$1,338.0bn 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.

Market

Region

Region comparison

Currency

Analyst Opinion

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.

Methodology

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.