Kota Kinabalu: Malaysia’s General Insurance (GI) industry remains operationally resilient, with no immediate disruption to policyholders, as the GI industry achieved a RM1.2 billion underwriting profit in 2025, with the combined ratio remaining around 93 per cent, supporting sustainable profitability.
This was revealed by The General Insurance Association of Malaysia (PIAM) in a media briefing by its Chief Executive Officer Chua Kim Soon on Tuesday at the Kota Kinabalu Hilton Hotel where he explained that underwriting discipline sustained profitability despite higher claims pressure.
“The motor insurance business remains unprofitable in Malaysia. Higher claim severity is driven by parts, labour and material costs,” he said, noting that premium growth is steady and structurally driven by motor and fire insurance segments.
For example, the 2025 insurance claim costs to repair accident motor vehicles and to rebuild damaged homes in Sabah on average per claim case are higher than in West Malaysia due to import shipping costs, vehicle spare parts, building material inflation costs.
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