As Malaysia's insurance industry crossed a staggering RM74.5 billion in premiums in 2022, these numbers are just the surface of a dynamic market poised for transformative growth.
Key Takeaways
- In 2022, the Malaysian insurance industry's total gross direct premiums amounted to RM74.5 billion, marking a 5.2% growth from RM70.8 billion in 2021.
- The life insurance segment contributed RM45.2 billion in gross premiums in 2022, representing 60.6% of the total industry premiums.
- General insurance gross premiums reached RM29.3 billion in 2022, up 5.1% year-on-year.
- In 2022, individual life new business annual premium equivalent (APE) was RM3.2 billion.
- Participating whole life policies accounted for 28% of life new business in 2022.
- Term life insurance sum assured new business reached RM150 billion in 2022.
- In 2022, motor insurance accounted for 42% of general insurance premiums at RM12.4 billion.
- Personal accident premiums RM2.1 billion, up 7% in 2022.
- Marine cargo premiums totaled RM1.3 billion in 2022.
- Family takaful certificates in force 7.8 million in 2022.
- General takaful contributions RM6.2 billion, growth 4.8% in 2022.
- Family takaful contributions RM12.5 billion in 2022.
- Industry-wide return on equity (ROE) 12.4% in 2022.
- Capital adequacy ratio for insurers averaged 180% end-2022.
- Number of complaints received by Ombudsman 45,200 in 2022.
Malaysia's insurance industry showed strong growth and digital expansion in 2022.
General Insurance Sector
- In 2022, motor insurance accounted for 42% of general insurance premiums at RM12.4 billion.
- Personal accident premiums RM2.1 billion, up 7% in 2022.
- Marine cargo premiums totaled RM1.3 billion in 2022.
- Fire and property premiums RM4.2 billion in 2022.
- General insurance claims ratio 64.5% in 2022.
- Motor own damage claims RM3.8 billion in 2022.
- Third party liability motor claims RM2.9 billion.
- Number of motor policies in force: 11.2 million in 2022.
- Health insurance (general) premiums RM3.5 billion in 2022.
- Miscellaneous class premiums RM5.1 billion, 17% of total.
- General insurers' underwriting profit RM1.2 billion in 2022.
- Loss ratio for fire insurance 55% in 2022.
- Aviation premiums RM450 million in 2022.
- Engineering insurance premiums RM1.1 billion.
- General insurance policies in force: 25 million in 2022.
- Telematics adoption in motor insurance 12% penetration in 2022.
- Catastrophe losses from floods RM800 million in 2022.
- General insurance investment yield 4.2% in 2022.
- Top 5 general insurers hold 70% market share in motor.
- Workmen's compensation premiums RM650 million.
- Expense ratio for general insurance 28.5% in 2022.
- Cyber insurance premiums grew 40% to RM120 million in 2022.
- Liability insurance premiums RM900 million in 2022.
- General insurance digital claims submissions 35% of total in 2022.
General Insurance Sector Interpretation
While Malaysians’ passion for driving funds the industry’s engine—racking up over RM6.7 billion in motor claims—insurers are cautiously steering toward a profitable future, with cyber insurance revving up by 40% and a welcome underwriting profit of RM1.2 billion proving that careful navigation pays off.
Life Insurance Sector
- In 2022, individual life new business annual premium equivalent (APE) was RM3.2 billion.
- Participating whole life policies accounted for 28% of life new business in 2022.
- Term life insurance sum assured new business reached RM150 billion in 2022.
- Medical and health riders contributed 35% of life premiums in 2022.
- Annualized premium equivalent for single premium policies was RM12.1 billion in 2022.
- Investment-linked fund size grew to RM85.4 billion end-2022.
- Persistency ratio for 13th month was 88.7% in 2022.
- Critical illness new business APE increased 15% to RM1.8 billion.
- Endowment policies new business sum assured RM95 billion in 2022.
- Group life insurance premiums RM2.4 billion in 2022.
- Life insurance claims ratio was 52.3% in 2022.
- Number of life policies in force: 18.5 million in 2022.
- Whole life policies represented 42% of in-force policies.
- Life insurers' investment income RM18.9 billion in 2022.
- Maturity claims paid RM10.2 billion in life segment 2022.
- Death claims amounted to RM3.1 billion in 2022.
- Surrender values paid out RM8.7 billion in 2022.
- Annuity business premiums RM1.2 billion in 2022.
- Life insurance market share of top 5 players: 65% in 2022.
- Digital life policy sales grew 30% YoY in 2022.
- Average sum assured per life policy: RM250,000 in 2022.
- Protection products penetration among population: 45% in 2022.
- Life insurers' solvency margin averaged 250% in 2022.
- New business value (VNB) for life insurers RM4.5 billion in 2022.
- Medical claims in life segment RM6.8 billion in 2022.
Life Insurance Sector Interpretation
In 2022, Malaysians seemed to collectively decide that love, tragedy, and hospital bills are best navigated with a financial co-pilot, as the industry quietly transformed RM150 billion in promises, RM18.9 billion in investment savvy, and an 88.7% commitment rate into a remarkably stable, digitally-evolving safety net for nearly half the population.
Market Size and Growth
- In 2022, the Malaysian insurance industry's total gross direct premiums amounted to RM74.5 billion, marking a 5.2% growth from RM70.8 billion in 2021.
- The life insurance segment contributed RM45.2 billion in gross premiums in 2022, representing 60.6% of the total industry premiums.
- General insurance gross premiums reached RM29.3 billion in 2022, up 5.1% year-on-year.
- Takaful industry's total contributions grew to RM18.7 billion in 2022 from RM17.9 billion in 2021.
- Insurance penetration rate in Malaysia stood at 4.2% of GDP in 2022, slightly down from 4.5% in 2021.
- Insurance density per capita was RM2,120 in 2022, compared to RM2,050 in 2021.
- The industry's new business premiums for life insurance surged 12.3% to RM15.8 billion in 2022.
- Total assets of insurance companies reached RM412 billion as of end-2022.
- Projected CAGR for Malaysian insurance market from 2023-2027 is 5.8%.
- Gross premiums are expected to hit RM90 billion by 2025.
- In 2021, life insurance premiums grew 4.8% to RM42.9 billion.
- General insurance motor class premiums were RM12.4 billion in 2022.
- Family takaful contributions increased by 6.1% to RM12.5 billion in 2022.
- Total industry claims paid out RM28.6 billion in 2022.
- Insurance industry's contribution to GDP was 3.9% in 2022.
- Number of insurance policies in force exceeded 120 million in 2022.
- Digital insurance premiums grew 25% YoY to RM2.1 billion in 2022.
- Market projected to reach USD 25.4 billion by 2028 at 6.2% CAGR.
- Health and medical insurance premiums hit RM15.7 billion in 2022.
- Retakaful contributions stood at RM1.8 billion in 2022.
- Annual growth rate of 4.5% forecasted for 2023-2025.
- Total equity of insurers was RM45.2 billion end-2022.
- Premiums from investment-linked policies rose 8.2% to RM4.3 billion.
- Fire insurance premiums totaled RM2.9 billion in 2022.
- General takaful general business contributions RM6.2 billion in 2022.
- Industry revenue grew 7% in H1 2023 to RM38.5 billion.
- Protection gap in life insurance estimated at RM1.2 trillion in 2022.
- Number of licensed insurers: 32 conventional and 17 takaful operators in 2022.
- Online sales channel penetration reached 15% of total premiums in 2022.
- Embedded insurance premiums grew 18% to RM850 million in 2022.
Market Size and Growth Interpretation
Malaysia’s insurance industry is growing robustly, like a well-intentioned umbrella collection, yet its record-high premiums and assets still can't quite cover the trillion-ringgit-sized raincloud of the nation's protection gap.
Regulatory and Performance Metrics
- Industry-wide return on equity (ROE) 12.4% in 2022.
- Capital adequacy ratio for insurers averaged 180% end-2022.
- Number of complaints received by Ombudsman 45,200 in 2022.
- Resolution rate of complaints 98.5% within SLA in 2022.
- BNM imposed RM15 million in penalties on insurers 2022.
- Risk-based capital (RBC) framework fully implemented since 2021.
- Minimum capital requirement for life insurers RM100 million.
- Insurers' combined ratio 92.1% in 2022.
- ESG integration in 75% of insurers' investment portfolios 2022.
- Cyber risk framework mandated for all insurers from 2023.
- Average operating expense ratio 25% industry-wide 2022.
- 92% of insurers compliant with data protection standards 2022.
- Profit before tax RM8.7 billion for industry in 2022.
- Staff costs as % of operating revenue 18% in 2022.
- Digital transformation investment RM1.2 billion industry-wide 2022.
- Customer satisfaction score average 82/100 in 2022 survey.
- Insolvency cases zero among licensed insurers 2022.
- Climate risk stress testing conducted for 100% of large insurers.
- Intermediaries registered: 150,000 agents and 5,000 brokers 2022.
- AML compliance violations fined RM5 million in 2022.
- Value of new business margin 18% for life insurers average.
- Embedded value growth 7.5% for life sector 2022.
- Industry dividend payout ratio 40% of profits in 2022.
Regulatory and Performance Metrics Interpretation
The Malaysian insurance industry in 2022 presented a portrait of robust financial health, paying handsome dividends and diligently following the rules, yet it still managed to collect enough customer complaints to paper the walls of its own very solvent offices.
Takaful Insurance
- Family takaful certificates in force 7.8 million in 2022.
- General takaful contributions RM6.2 billion, growth 4.8% in 2022.
- Family takaful contributions RM12.5 billion in 2022.
- Takaful penetration rate 15% of total insurance market in 2022.
- Retakaful operators' capacity RM2.1 billion in 2022.
- Takaful claims paid RM7.3 billion in 2022.
- Motor takaful market share 28% of total motor in 2022.
- Takaful assets under management RM110 billion end-2022.
- New family takaful business contributions RM3.4 billion.
- Persistency for takaful 85% at 13th month 2022.
- Takaful operators number: 17 in 2022.
- Medical takaful contributions RM4.1 billion in 2022.
- Takaful investment income RM5.6 billion.
- Surplus distribution to participants RM1.9 billion in 2022.
- General takaful motor contributions RM3.8 billion.
- Takaful density per Muslim population RM1,450 in 2022.
- Digital takaful sales 20% of new business in 2022.
- Takaful health claims ratio 68% in 2022.
- Top takaful operator market share 22% in family segment.
- Takaful protection gap RM800 billion estimated 2022.
- Retakaful ceded contributions RM1.8 billion.
- Takaful underwriting surplus RM450 million in general.
- Family takaful new business growth 9% YoY 2022.
- Takaful policies in force 15 million total 2022.
- Takaful solvency ratio average 220% in 2022.
Takaful Insurance Interpretation
Despite a robust RM110 billion in assets and a 9% growth in new family business, the industry's celebration is sobered by an RM800 billion protection gap, proving that while Malaysians are increasingly buying takaful, they are still woefully underbuying it.
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