Market Trends of Malaysia Motor Insurance Industry
Phase Liberalization Of The Industry And New Insurance Products
The phased liberalization of the Motor Tariff in Malaysia has resulted in companies constantly introducing new and innovative motor insurance products to better serve customers and meet their various protection needs. The industry is keenly anticipating further liberalization and looking forward to the full market opening for competitive players.
Innovative insurance products with increasing partnerships among the market players are leading to the expansion of the motor insurance industry in Malaysia. Recently Policy Street, an innovative insurance solutions provider, and CARSOME, Southeast Asia's largest integrated car e-commerce platform launched a product providing personal accident coverage with added features including protection against unemployment, ensuring free car loan payments in case the policyholder loses their job. These innovative products are leading to rising motor insurance premiums in the region.
Rising Sales Of Vehicle Driving The Market
The two main insurance sectors in the insurance sector are fire and the automobile. Consequently, the auto insurance sector is the largest class in the insurance sector. The increase in new vehicle sales, in both the private and commercial vehicle segments, contributed to the 1.8% growth in motor insurance recorded gross written premium.
Sales of passenger cars in Malaysia are observing a recovery in unit sales post rising to 638.56 thousand sales last year with SUVs, Small cars, Mini, and medium cars occupying the largest segment of the market. Last year, there were 33.3 million registered vehicles in Malaysia of which 47.3 percent were cars, 46.6 percent were motorcycles and 4.7 percent were goods vehicles. versus the human population, which stood at 32.6 million.
