Gitnux/Report 2026

Malaysian Life Insurance Industry Statistics

Malaysia’s life insurers paid RM 28.4 billion in claims in 2022, but the real tension is how rapidly those outcomes are turning over, with death claims settling at a 98.7% rate and the average claim processed in just 14.2 days. From critical illness payouts rising 13.4% and medical and health claims of RM 6.7 billion to investment assets of RM 298.7 billion and 2.6% life penetration of GDP, this page puts performance, customer impact, and financial resilience side by side.
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Malaysian Life Insurance Industry Statistics
Christopher MorganWritten by Christopher Morgan·Edited by Maya Johansson·Fact-checked by Nicholas Chambers
Last verified Jul 10, 2026
Verified via a 4-step process
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Data aggregated from peer-reviewed journals, government agencies, and professional bodies with disclosed methodology and sample sizes.

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Next review Jan 2027
Malaysian life insurers paid RM 28.4 billion in total claims. Maturity benefits reached RM 12.6 billion. Medical and health claims totaled RM 6.7 billion with an average processing time of 14.2 days.

Key Takeaways

  • Total claims paid by life insurers amounted to RM 28.4 billion in 2022, up 7.9% from 2021.
  • Death claims payouts reached RM 4.2 billion, average claim RM 85,000.
  • Maturity benefits paid RM 12.6 billion to 450,000 claimants.
  • Life insurers' investment assets totaled RM 298.7 billion in 2022, yielding 4.8% return.
  • Equity investments comprised 22.4% of portfolio at RM 67 billion.
  • Fixed income securities RM 180.2 billion, 60.3% of assets.
  • In 2022, the Malaysian life insurance industry recorded total assets of RM 312.4 billion, reflecting a 6.8% year-on-year growth driven by increased investment income.
  • Life insurance penetration rate in Malaysia stood at 2.6% of GDP in 2022, up from 2.4% in 2021 according to Bank Negara Malaysia data.
  • The industry's total premiums earned grew by 4.2% to RM 45.7 billion in 2022 from RM 43.8 billion in 2021.
  • In 2022, total in-force policies numbered 16.8 million, up 2.9% from 16.3 million in 2021.
  • Life insurance penetration reached 36.4% of adult population in 2022.
  • Sum assured in force stood at RM 2.1 trillion, growing 4.7% YoY.
  • In 2022, Malaysian life insurance premiums grew 4.5% to RM 46.8 billion amid economic recovery.
  • Annualized premium equivalent (APE) for new business reached RM 9.2 billion in 2022, up 13.1%.
  • Regular premium new business increased by 8.7% to RM 7.1 billion in 2022.

In 2022, Malaysian life insurers paid RM28.4 billion in claims, up 7.9%, with strong growth in critical illness.

Related reading

01 · Category

Claims And Payouts25 stats

01
Total claims paid by life insurers amounted to RM 28.4 billion in 2022, up 7.9% from 2021.
02
Death claims payouts reached RM 4.2 billion, average claim RM 85,000.
03
Maturity benefits paid RM 12.6 billion to 450,000 claimants.
04
Critical illness claims RM 3.8 billion, 13.4% increase.
05
Medical and health claims settled RM 6.7 billion.
06
Surrender values paid out RM 9.1 billion in 2022.
07
Claims settlement ratio for death claims 98.7%.
08
Average processing time for claims 14.2 days.
09
Annuity payments RM 1.9 billion to 120,000 annuitants.
10
Disability claims RM 450 million, up 8.6%.
11
Hospitalization claims volume 2.8 million cases.
12
Rejected claims ratio 1.3%, mainly documentation issues.
13
Total benefits and claims RM 31.2 billion including bonuses.
14
Par fund bonuses declared RM 4.5 billion.
15
Cancer claims RM 1.8 billion, 47% of CI payouts.
16
Group life claims RM 680 million.
17
Q1 2023 claims RM 7.9 billion, +9.1%.
18
Women claims share 48.2%, average RM 72,000.
19
Under 50 age group claims 55% of total volume.
20
COVID-related death claims RM 120 million in 2022.
21
Surgical claims RM 2.1 billion.
22
ILP partial withdrawals RM 3.4 billion.
23
Fast-track claims 75% settled within 7 days.
24
East Malaysia claims RM 2.3 billion, 8% total.
25
Pension claims RM 890 million from retirement funds.

02 · Category

Investment And Assets25 stats

01
Life insurers' investment assets totaled RM 298.7 billion in 2022, yielding 4.8% return.
02
Equity investments comprised 22.4% of portfolio at RM 67 billion.
03
Fixed income securities RM 180.2 billion, 60.3% of assets.
04
Property investments RM 12.4 billion, return 5.2%.
05
Investment income RM 14.3 billion, up 10.1% YoY.
06
Matching adjustment portfolio RM 45.6 billion for liabilities.
07
Unrealized gains RM 8.9 billion end-2022.
08
Deposits and loans RM 28.1 billion, 9.4% share.
09
Alternative investments RM 5.7 billion including PE funds.
10
Par fund assets RM 165.4 billion, non-par RM 133.3 billion.
11
Yield on invested assets 4.6% average in 2022.
12
Government securities holdings RM 95.2 billion.
13
Corporate bonds RM 72.8 billion in portfolio.
14
Unit trusts exposure RM 18.6 billion.
15
Overseas investments RM 22.3 billion, 7.5% total.
16
Impairment charges RM 210 million on equities.
17
Q1 2023 investment return 1.2%.
18
ESG-aligned assets RM 35.4 billion, 12% portfolio.
19
Liquidity ratio 150.2% against requirements.
20
Derivatives usage for hedging RM 4.1 billion notional.
21
Real estate yield 4.9%, valued RM 12.4 billion.
22
ILP fund assets RM 89.7 billion.
23
Solvency margin average 220% for life insurers.
24
East Malaysia asset allocation 10% of total.
25
Risk-based capital (RBC) assets coverage 180%.
Interpretation

Investment And Assets Interpretation

In 2022, Malaysian life insurers invested RM 298.7 billion in assets, with fixed income making up 60.3% at RM 180.2 billion and investment income rising 10.1% YoY to RM 14.3 billion, underscoring steady momentum in the industry’s Investment And Assets engine.

03 · Category

Market Size And Growth30 stats

01
In 2022, the Malaysian life insurance industry recorded total assets of RM 312.4 billion, reflecting a 6.8% year-on-year growth driven by increased investment income.
02
Life insurance penetration rate in Malaysia stood at 2.6% of GDP in 2022, up from 2.4% in 2021 according to Bank Negara Malaysia data.
03
The industry's total premiums earned grew by 4.2% to RM 45.7 billion in 2022 from RM 43.8 billion in 2021.
04
New business annual premium equivalent (APE) for life insurance surged 12.3% to RM 8.9 billion in 2022.
05
Market size of Malaysian life insurance projected to reach USD 25.6 billion by 2027, growing at CAGR of 5.1% from 2022.
06
Between 2018-2022, life insurance density increased from RM 1,120 to RM 1,356 per capita.
07
Industry's compound annual growth rate (CAGR) for gross premiums was 3.7% from 2017 to 2022.
08
In Q4 2022, life insurance new business value grew 15.4% quarter-on-quarter.
09
Total life insurance market valued at RM 48.2 billion in premiums for 2023 preliminary figures.
10
Growth in protection single premium business was 28.6% in 2022.
11
Life reinsurance market in Malaysia expanded by 7.2% to RM 5.3 billion in 2022.
12
Digital life insurance sales channel grew 45% YoY in 2022, contributing 12% to total new business.
13
Industry's gross written premiums (GWP) for life segment hit RM 52.1 billion in 2023.
14
From 2020-2022, life insurance market recovered with 9.1% CAGR post-COVID.
15
Embedded value (EV) of major life insurers grew 8.5% to RM 28.4 billion in 2022.
16
Life insurance industry's share of total insurance market was 76.3% in 2022.
17
Projected market growth rate of 4.8% annually until 2028 per Fitch Ratings.
18
In 2021, life insurance new business premiums were RM 14.6 billion, up 3.2%.
19
Total industry revenue reached RM 50.3 billion in 2022.
20
Growth in investment-linked funds under life insurance was 11.2% in 2022.
21
Malaysian life insurance market ranked 5th in ASEAN by premium volume in 2022.
22
2023 saw 5.4% growth in life insurance gross premiums to RM 54.9 billion.
23
Pre-2020 CAGR for life insurance was 4.1%, accelerating post-pandemic.
24
Life insurance assets under management (AUM) at RM 320.1 billion end-2022.
25
New business profit metric rose 14.7% in 2022 for top insurers.
26
Industry's value of new business (VNB) increased 18.2% to RM 2.1 billion in 2022.
27
2022 market expansion attributed to 22% rise in health & protection sales.
28
Total life fund size grew to RM 315.7 billion by mid-2023.
29
CAGR of 6.2% expected for 2023-2027 per A.M. Best.
30
Life insurance contributed 78% to total insurance assets in 2022.

More related reading

04 · Category

Policyholders And Penetration25 stats

01
In 2022, total in-force policies numbered 16.8 million, up 2.9% from 16.3 million in 2021.
02
Life insurance penetration reached 36.4% of adult population in 2022.
03
Sum assured in force stood at RM 2.1 trillion, growing 4.7% YoY.
04
New policies issued totaled 1.42 million in 2022, +5.6%.
05
Average sum assured per policy was RM 125,000 in 2022.
06
Individual policyholders numbered 14.7 million, 87% of total.
07
Group schemes covered 2.1 million lives in 2022.
08
Persistency rate for 13th month policies at 82.3% in 2022.
09
Female policyholders comprised 52.1% of total in 2022.
10
Urban penetration rate 48.2% vs rural 22.7% in 2022.
11
Average age of policyholders 38.4 years, median 36.2.
12
Policies lapsed 1.1 million, lapse ratio 7.8% in 2022.
13
Multi-policy holders grew to 28% of population.
14
Bumiputera policyholders 62.3% of total in 2022.
15
Digital onboarding policies 450,000, 32% of new business.
16
Under 30 age group new policies 420,000, 30% share.
17
Senior citizens (60+) policies 1.8 million in force.
18
Household penetration 45.6% with at least one policy.
19
Q1 2023 new policies 380,000, +7.2% QoQ.
20
Critical illness coverage policies 5.6 million.
21
Term life policies in force 3.2 million.
22
ILP policies 2.9 million, sum assured RM 450 billion.
23
Bancassurance-sourced policies 55% of new business.
24
East Malaysia policies 1.9 million, 11% total.
25
Microinsurance life policies 850,000 lives covered.

05 · Category

Premiums And Revenue27 stats

01
In 2022, Malaysian life insurance premiums grew 4.5% to RM 46.8 billion amid economic recovery.
02
Annualized premium equivalent (APE) for new business reached RM 9.2 billion in 2022, up 13.1%.
03
Regular premium new business increased by 8.7% to RM 7.1 billion in 2022.
04
Single premium collections surged 25.4% to RM 4.3 billion in 2022.
05
Investment-linked policy premiums grew 16.8% YoY to RM 5.6 billion in 2022.
06
Health and protection segment premiums hit RM 12.4 billion, 27% of total in 2022.
07
First-year premiums for whole life products rose 6.3% to RM 3.8 billion.
08
Renewal premiums constituted 68.4% of total premiums at RM 31.2 billion in 2022.
09
Participating fund premiums increased 5.9% to RM 18.7 billion in 2022.
10
Non-participating fund premiums grew 7.1% to RM 14.5 billion.
11
Medical and health riders premiums reached RM 8.9 billion, up 19.2%.
12
Term life premiums expanded 11.5% to RM 4.2 billion in 2022.
13
Endowment policy premiums were RM 6.7 billion, 14.6% of total.
14
Annuity premiums collected RM 1.8 billion, growing 9.4% YoY.
15
Group life premiums rose 12.8% to RM 2.9 billion in 2022.
16
Retail life premiums dominated at 92% of total, RM 42.1 billion.
17
Corporate-owned life insurance premiums up 15.3% to RM 3.6 billion.
18
First sector premiums declined 2.1% to RM 1.2 billion due to lapses.
19
Q1 2023 premiums grew 6.7% to RM 12.4 billion.
20
Medical rider attach rate at 65%, contributing RM 9.2 billion premiums.
21
Savings and investment products premiums RM 22.3 billion, 49% share.
22
Protection pure premiums RM 10.8 billion, up 22.4%.
23
Bancassurance channel premiums RM 18.5 billion, 40% of total.
24
Online direct premiums RM 1.4 billion, 3% of market.
25
2022 net premiums earned RM 42.6 billion after reinsurance.
26
Premiums from East Malaysia grew 7.8% to RM 3.2 billion.
27
Critical illness premiums RM 4.1 billion, 9% YoY growth.
Interpretation

Premiums And Revenue Interpretation

Malaysian life insurers saw premiums strengthen in the Premiums and Revenue category in 2022, with total premiums rising 4.5% to RM 46.8 billion as new business APE climbed 13.1% to RM 9.2 billion and health and protection reached RM 12.4 billion, 27% of the total.
report visual · Comparison

Malaysian life insurers: claims payout growth vs critical illness increase

Claims paid rose in 2022, while critical illness claims also increased, indicating broader demand across key coverage types.

Death claims payouts reached RM 4.2 billion, average claim RM 85,000.85,000
Critical illness claims RM 3.8 billion, 13.4% increase.
13.4%
Total claims paid by life insurers amounted to RM 28.4 billion in 2022, up 7.9% from 2021.
7.9%
Reference

Cite This Report

This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.

APA
Christopher Morgan. (2026, February 13). Malaysian Life Insurance Industry Statistics. Gitnux. https://gitnux.org/malaysian-life-insurance-industry-statistics
MLA
Christopher Morgan. "Malaysian Life Insurance Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/malaysian-life-insurance-industry-statistics.
Chicago
Christopher Morgan. 2026. "Malaysian Life Insurance Industry Statistics." Gitnux. https://gitnux.org/malaysian-life-insurance-industry-statistics.

Sources & references

18 datasets cited across this report · attribution is report-level

liam.org.mybnm.gov.mytheedgemalaysia.compwc.comstatista.comknightfrank.com.mymida.gov.myreinsurancene.wsmckinsey.comwww2.deloitte.cominsurancebusinessmag.comfitchratings.comaseanbriefing.comkpmg.commilliman.comey.comnews.ambest.cominsuranceasia.com