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
1In 2022, motor insurance accounted for 42% of general insurance premiums at RM12.4 billion.
Verified2Personal accident premiums RM2.1 billion, up 7% in 2022.
Verified3Marine cargo premiums totaled RM1.3 billion in 2022.
Verified4Fire and property premiums RM4.2 billion in 2022.
Directional5General insurance claims ratio 64.5% in 2022.
Single source6Motor own damage claims RM3.8 billion in 2022.
Verified7Third party liability motor claims RM2.9 billion.
Verified8Number of motor policies in force: 11.2 million in 2022.
Verified9Health insurance (general) premiums RM3.5 billion in 2022.
Directional10Miscellaneous class premiums RM5.1 billion, 17% of total.
Single source11General insurers' underwriting profit RM1.2 billion in 2022.
Verified12Loss ratio for fire insurance 55% in 2022.
Verified13Aviation premiums RM450 million in 2022.
Verified14Engineering insurance premiums RM1.1 billion.
Directional15General insurance policies in force: 25 million in 2022.
Single source16Telematics adoption in motor insurance 12% penetration in 2022.
Verified17Catastrophe losses from floods RM800 million in 2022.
Verified18General insurance investment yield 4.2% in 2022.
Verified19Top 5 general insurers hold 70% market share in motor.
Directional20Workmen's compensation premiums RM650 million.
Single source21Expense ratio for general insurance 28.5% in 2022.
Verified22Cyber insurance premiums grew 40% to RM120 million in 2022.
Verified23Liability insurance premiums RM900 million in 2022.
Verified24General insurance digital claims submissions 35% of total in 2022.
DirectionalGeneral 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
1In 2022, individual life new business annual premium equivalent (APE) was RM3.2 billion.
Verified2Participating whole life policies accounted for 28% of life new business in 2022.
Verified3Term life insurance sum assured new business reached RM150 billion in 2022.
Verified4Medical and health riders contributed 35% of life premiums in 2022.
Directional5Annualized premium equivalent for single premium policies was RM12.1 billion in 2022.
Single source6Investment-linked fund size grew to RM85.4 billion end-2022.
Verified7Persistency ratio for 13th month was 88.7% in 2022.
Verified8Critical illness new business APE increased 15% to RM1.8 billion.
Verified9Endowment policies new business sum assured RM95 billion in 2022.
Directional10Group life insurance premiums RM2.4 billion in 2022.
Single source11Life insurance claims ratio was 52.3% in 2022.
Verified12Number of life policies in force: 18.5 million in 2022.
Verified13Whole life policies represented 42% of in-force policies.
Verified14Life insurers' investment income RM18.9 billion in 2022.
Directional15Maturity claims paid RM10.2 billion in life segment 2022.
Single source16Death claims amounted to RM3.1 billion in 2022.
Verified17Surrender values paid out RM8.7 billion in 2022.
Verified18Annuity business premiums RM1.2 billion in 2022.
Verified19Life insurance market share of top 5 players: 65% in 2022.
Directional20Digital life policy sales grew 30% YoY in 2022.
Single source21Average sum assured per life policy: RM250,000 in 2022.
Verified22Protection products penetration among population: 45% in 2022.
Verified23Life insurers' solvency margin averaged 250% in 2022.
Verified24New business value (VNB) for life insurers RM4.5 billion in 2022.
Directional25Medical claims in life segment RM6.8 billion in 2022.
Single sourceLife 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
1In 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.
Verified2The life insurance segment contributed RM45.2 billion in gross premiums in 2022, representing 60.6% of the total industry premiums.
Verified3General insurance gross premiums reached RM29.3 billion in 2022, up 5.1% year-on-year.
Verified4Takaful industry's total contributions grew to RM18.7 billion in 2022 from RM17.9 billion in 2021.
Directional5Insurance penetration rate in Malaysia stood at 4.2% of GDP in 2022, slightly down from 4.5% in 2021.
Single source6Insurance density per capita was RM2,120 in 2022, compared to RM2,050 in 2021.
Verified7The industry's new business premiums for life insurance surged 12.3% to RM15.8 billion in 2022.
Verified8Total assets of insurance companies reached RM412 billion as of end-2022.
Verified9Projected CAGR for Malaysian insurance market from 2023-2027 is 5.8%.
Directional10Gross premiums are expected to hit RM90 billion by 2025.
Single source11In 2021, life insurance premiums grew 4.8% to RM42.9 billion.
Verified12General insurance motor class premiums were RM12.4 billion in 2022.
Verified13Family takaful contributions increased by 6.1% to RM12.5 billion in 2022.
Verified14Total industry claims paid out RM28.6 billion in 2022.
Directional15Insurance industry's contribution to GDP was 3.9% in 2022.
Single source16Number of insurance policies in force exceeded 120 million in 2022.
Verified17Digital insurance premiums grew 25% YoY to RM2.1 billion in 2022.
Verified18Market projected to reach USD 25.4 billion by 2028 at 6.2% CAGR.
Verified19Health and medical insurance premiums hit RM15.7 billion in 2022.
Directional20Retakaful contributions stood at RM1.8 billion in 2022.
Single source21Annual growth rate of 4.5% forecasted for 2023-2025.
Verified22Total equity of insurers was RM45.2 billion end-2022.
Verified23Premiums from investment-linked policies rose 8.2% to RM4.3 billion.
Verified24Fire insurance premiums totaled RM2.9 billion in 2022.
Directional25General takaful general business contributions RM6.2 billion in 2022.
Single source26Industry revenue grew 7% in H1 2023 to RM38.5 billion.
Verified27Protection gap in life insurance estimated at RM1.2 trillion in 2022.
Verified28Number of licensed insurers: 32 conventional and 17 takaful operators in 2022.
Verified29Online sales channel penetration reached 15% of total premiums in 2022.
Directional30Embedded insurance premiums grew 18% to RM850 million in 2022.
Single sourceMarket 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
1Industry-wide return on equity (ROE) 12.4% in 2022.
Verified2Capital adequacy ratio for insurers averaged 180% end-2022.
Verified3Number of complaints received by Ombudsman 45,200 in 2022.
Verified4Resolution rate of complaints 98.5% within SLA in 2022.
Directional5BNM imposed RM15 million in penalties on insurers 2022.
Single source6Risk-based capital (RBC) framework fully implemented since 2021.
Verified7Minimum capital requirement for life insurers RM100 million.
Verified8Insurers' combined ratio 92.1% in 2022.
Verified9ESG integration in 75% of insurers' investment portfolios 2022.
Directional10Cyber risk framework mandated for all insurers from 2023.
Single source11Average operating expense ratio 25% industry-wide 2022.
Verified1292% of insurers compliant with data protection standards 2022.
Verified13Profit before tax RM8.7 billion for industry in 2022.
Verified14Staff costs as % of operating revenue 18% in 2022.
Directional15Digital transformation investment RM1.2 billion industry-wide 2022.
Single source16Customer satisfaction score average 82/100 in 2022 survey.
Verified17Insolvency cases zero among licensed insurers 2022.
Verified18Climate risk stress testing conducted for 100% of large insurers.
Verified19Intermediaries registered: 150,000 agents and 5,000 brokers 2022.
Directional20AML compliance violations fined RM5 million in 2022.
Single source21Value of new business margin 18% for life insurers average.
Verified22Embedded value growth 7.5% for life sector 2022.
Verified23Industry dividend payout ratio 40% of profits in 2022.
VerifiedRegulatory 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
1Family takaful certificates in force 7.8 million in 2022.
Verified2General takaful contributions RM6.2 billion, growth 4.8% in 2022.
Verified3Family takaful contributions RM12.5 billion in 2022.
Verified4Takaful penetration rate 15% of total insurance market in 2022.
Directional5Retakaful operators' capacity RM2.1 billion in 2022.
Single source6Takaful claims paid RM7.3 billion in 2022.
Verified7Motor takaful market share 28% of total motor in 2022.
Verified8Takaful assets under management RM110 billion end-2022.
Verified9New family takaful business contributions RM3.4 billion.
Directional10Persistency for takaful 85% at 13th month 2022.
Single source11Takaful operators number: 17 in 2022.
Verified12Medical takaful contributions RM4.1 billion in 2022.
Verified13Takaful investment income RM5.6 billion.
Verified14Surplus distribution to participants RM1.9 billion in 2022.
Directional15General takaful motor contributions RM3.8 billion.
Single source16Takaful density per Muslim population RM1,450 in 2022.
Verified17Digital takaful sales 20% of new business in 2022.
Verified18Takaful health claims ratio 68% in 2022.
Verified19Top takaful operator market share 22% in family segment.
Directional20Takaful protection gap RM800 billion estimated 2022.
Single source21Retakaful ceded contributions RM1.8 billion.
Verified22Takaful underwriting surplus RM450 million in general.
Verified23Family takaful new business growth 9% YoY 2022.
Verified24Takaful policies in force 15 million total 2022.
Directional25Takaful solvency ratio average 220% in 2022.
Single sourceTakaful 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.
Sources & References
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