Malaysia Health Insurance Market Trends
Estimated to be USD 915.44 million in 2024, the size of the health insurance market in Malaysia, measured by Gross Written Premium (GWP), is expected to rise at a CAGR of 9.99% from 2025 to 2030. Estimated to be USD 137.23 million in 2024, the size of the health insurance market in Malaysia based on New Business Premium (NBP) is expected to rise at a CAGR of 11.26% from 2025 to 2030.
The growth of industry is driven by changing demographics, economic conditions, and consumer awareness. The increasing healthcare costs in Malaysia are driving up the demand for both public and private health insurance. Medical expenses in the country have been consistently rising due to the growing occurrence of chronic diseases, the expenses associated with advanced medical treatments, and continuous enhancements to healthcare infrastructure. In Malaysia, the public healthcare sector is the dominant source of funding, covering approximately 51.2% of total health expenditure. The figure includes government funding from the Ministry of Health (MoH), which is the largest single source, followed by out-of-pocket spending and private insurers. However, there is a growing trend toward private health insurance, as individuals seek additional coverage for services not fully reimbursed by the public system, such as alternative therapies and certain prescription drugs.
Report Coverage & Deliverables
The PDF report & online dashboard will help you understand
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Rising Healthcare Costs Fuel Insurance Demand
The steady increase in medical treatment expenses, hospital stays, and surgical procedures is a major growth driver in Malaysia’s health insurance industry. In 2023, total healthcare spending reached approximately USD 19.57 billion, reflecting the growing financial burden on individuals. This trend has increased public awareness of the need for financial protection against unforeseen medical emergencies, prompting more people to seek health insurance coverage.
Premium Adjustments in Response to Rising Claims
The industry is also seeing a notable rise in medical claims, prompting insurers such as Prudential to revise premium rates upward. This trend is largely attributed to inflation, medical technology advancements, and an aging population. Similar adjustments are expected across the industry as insurers strive to maintain sustainable underwriting margins amid growing claims costs.
Policy & Regulatory Support for Market Expansion
Government-led initiatives are encouraging greater private sector participation in healthcare. Regulatory reforms aim to enhance product competitiveness and improve access to health coverage. Notably, Bank Negara Malaysia (BNM) is actively engaged in policy dialogues to keep insurance affordable while ensuring insurer stability. In addition, the regulators are collaborating with stakeholders on nine strategic initiatives to manage medical inflation more effectively.
Public-Private Synergies for Inclusive Coverage
The launch of the National B40 Protection Scheme in 2019, with an initial allocation of USD 486 million, demonstrates the government's commitment to providing free health insurance coverage for 4.1 million low-income individuals. This reflects growing integration between public funding and private insurance mechanisms to widen healthcare access.
Digitalization and Innovation Redefining the Market
Digital platforms and technologies such as telematics are driving product personalization, claims management, and fraud detection. MSIG’s partnership with Dedoco and Embed Global in launching the Ping message verification platform highlights how insurers are addressing the rise in digital scams. Similarly, Tokio Marine’s eApplication Portal simplifies the claims process, allowing agents to enhance client servicing and productivity.
Market Concentration & Characteristics
The chart below illustrates the relationship between industry concentration, industry characteristics, and industry participants. The x-axis represents the level of industry concentration, ranging from low to high. The y-axis represents various industry characteristics, including industry competition, degree of innovation, impact of regulations, level of partnership & collaboration activities, and geographic expansion. The industry operates under a highly competitive and fragmented structure. The degree of innovation is moderate, and the impact of regulations on industry is high. The level of partnership and acquisition activity is moderate, and the geographic expansion of the industry is high.
The degree of innovation in the market is significantly moderate, driven by digitalization, regulatory reforms, and personalized healthcare solutions. For instance, In September 2023, Generali partnered with the United Nations Development Programme (UNDP) to launch the "Insurance Innovation Challenge Fund" in Malaysia. This initiative aims to develop innovative insurance products and services to boost economic resilience, particularly among small and medium-sized enterprises (SMEs). The fund provides financial and technical support to selected solutions, driving advancements in the insurance sector.
Several key market players are devising business growth strategies in the form of mergers and acquisitions. Through M&A activity, these companies can expand their business geographies. In December 2024, Public Bank Berhad acquired a 44.15% stake in LPI Capital Bhd, Lonpac's parent company. This acquisition made Public Bank the largest shareholder of LPI. AM Best assessed that this change would have a neutral impact on Lonpac's credit rating fundamentals, suggesting stability in its operations and financial standing.
The regulatory landscape has a significant impact on the market, mainly through frameworks aimed at enhancing consumer protection and ensuring the financial stability of insurers. The Insurance Act 1996 and the Insurance Regulations 1996 are pivotal pieces of legislation governing the insurance industry in Malaysia. The Insurance Act 1996 establishes a comprehensive regulatory framework to ensure the insurance sector's stability and integrity, protect policyholders, and promote fair competition among insurers. In 2024, Malaysian health insurance regulations focused on increased individual income tax relief for medical expenses, including those with co-payment features.
Insurance providers are increasingly diversifying their offerings to cater to different customer segments, including expatriates, freelancers, self-employed individuals, and corporate employees. Moreover, insurers are also leveraging data analytics and artificial intelligence to refine their offerings, allowing for more personalized insurance solutions that cater to the unique circumstances of policyholders.
Several market players are expanding their business by entering new geographical regions to strengthen their market position and expand their product portfolio. In March 2025, the ASEAN Football Federation (AFF) announced that MSIG, a leading general insurer in the ASEAN region, has become the Official Insurance Partner for several major football tournaments under the collective branding of ASEAN United FC. This partnership includes significant events such as the ASEAN Mitsubishi Electric Cup 2024, the ASEAN Club Championship Shopee Cup, the ASEAN Women’s Championship, and the ASEAN U-23 Championship.
Insurance Type Insights
The insurance type segment comprises public and private. Public insurance is further cross-segmented into corporate policy and retail policy. The private segment led the market with the largest revenue share of 72.98% in 2024 and is anticipated to register the fastest CAGR over the forecast period. The growth is driven by a variety of medical and health insurance products offered by licensed insurers and takaful operators that cater to individuals, families, and corporations. These premium-based, voluntary plans are highly customizable and encompass a broad range of medical costs, such as hospitalization, surgical procedures, outpatient services, maternity care, and coverage for critical illnesses. They can be obtained as standalone plans or as riders attached to life insurance policies. The market is primarily segmented into two categories
-
Conventional health insurance, which is provided by general and life insurers such as AIA, Prudential, and Allianz.
-
Takaful medical plans are available through Islamic insurers like Etiqa Takaful and Takaful Malaysia.
Policy Type Insights
The retail policy segment led the market with the largest revenue share of 54.44% in 2024 and is anticipated to register a significant CAGR over the forecast period, driven by the growing regulatory changes driving the market landscape. The government has implemented stricter regulations mandating certain types of coverage, increasing compliance rates, and expanding the retail policies' customer base. Introducing innovative insurance products customized to meet consumer needs, such as customizable plans and usage-based pricing models, has also contributed to market expansion. Furthermore, demographic shifts, including an aging population and urbanization trends, influence the demand for health insurance. Older individuals seek better protection due to health concerns and increased vulnerability to health risks. Urbanization leads to more accidents due to increased city traffic and activity levels, prompting residents to secure adequate coverage.
The corporate policy segment is expected to register the fastest CAGR over the forecast period. The growth of corporate policy in the industry is driven by several key factors, including increasing regulatory requirements, heightened awareness of workplace safety, and the rising costs associated with employee benefits. In addition, the increasing focus on employee well-being has led organizations to prioritize health insurance as part of their overall employee benefits package. Companies recognize that providing adequate coverage protects employees and enhances job satisfaction and retention rates. Furthermore, the rising costs of healthcare and compensation claims have prompted businesses to seek more effective risk management strategies through corporate health insurance policies.
Private Health Insurance Market (GWP), By Distribution Channel Insights
The agents segment accounted for the largest market revenue share in 2024. The growth is driven by the increasing cost of medical services, which has increased consumer awareness regarding the necessity of health insurance for financial protection against unexpected medical expenses. As healthcare costs continue to rise, individuals and families are more inclined to seek comprehensive coverage, leading to an uptick in demand for health insurance products. In addition, the growing number of daycare procedures that require less hospital stay time has prompted insurers to adapt their offerings, making it easier for policyholders to claim benefits without lengthy hospitalization.
The direct business and online segments are anticipated to register the fastest CAGR over the forecast period. The increasing digitization of the insurance industry has transformed consumer behavior, with more individuals preferring to purchase insurance online due to its convenience and accessibility. A growing demand for personalized services drives this shift as consumers seek tailored insurance products that meet their needs. Moreover, technological advancements such as AI and data analytics enable insurers to offer enhanced customer experiences through streamlined processes and improved service delivery. The COVID-19 pandemic further accelerated this trend, as lockdowns prompted many consumers to turn to online platforms for their insurance needs. As a result, the online distribution channel has become a vital component of the market in Malaysia, facilitating policy comparisons and purchases while allowing insurers to reach a broader audience efficiently.
Key Malaysia Health Insurance Company Insights
The private health insurance sector is considerably fragmented. Notable insurers in this segment include Generali Insurance Malaysia Berhad, one of the world's largest insurance groups, offering diverse and comprehensive accident insurance products tailored to various customer segments. Lonpac, a leading player, holds a substantial market share primarily among civil servants and high-income individuals. Other prominent private insurers, including Tokio Marine, Berjaya Sompo, and MSIG, are all competing by offering flexible, personalized coverage and enhanced customer experience.
Key Malaysian Health Insurance Companies
- Lonpac
- Tokio Marine
- Berjaya Sompo
- MSIG
- Generali Insurance Malaysia Berhad
- AIA BHD
- Etiqa Insurance
- AIG Malaysia
- Zurich General
- Allianz General
Recent Developments
-
In October 2023, Generali Malaysia launched its first model branch in Seremban, offering an integrated insurance experience with both general and life insurance products under one roof. Similarly, in January 2024, a new branch was opened in Melaka, reinforcing Generali's commitment to providing comprehensive services nationwide.
-
In May 2023, Generali Malaysia launched a single, unified brand. This rebranding aimed to streamline operations and present a cohesive identity, reflecting Generali's commitment to providing comprehensive insurance solutions, including medical and health coverage.
-
In November 2022, Etiqa launched i-Care OKU, the first online Takaful plan providing one-year coverage for people with disabilities (PwD). This plan simplifies the application process by eliminating the need for medical checkups and offers an accessible website with auditory web accessibility features.
Malaysia Health Insurance Market in Terms of GWP Report Scope
|
Report Attribute |
Details |
|
Market size value in 2025 |
USD 997.47 million |
|
Revenue forecast in 2030 |
USD 1,605.50 million |
|
Growth rate |
CAGR of 9.99% from 2025 to 2030 |
|
Base year for estimation |
2024 |
|
Historical data |
2018-2023 |
|
Forecast data |
2025-2030 |
|
Quantitative units |
Revenue in USD million/billion and CAGR from 2025 to 2030 |
|
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
|
Segments covered |
Insurance type, policy type, distribution channel |
|
Country scope |
Malaysia |
|
Key companies profiled |
Lonpac, Tokio Marine; Berjaya Sompo; MSIG; Generali Insurance Malaysia Berhad; AIA BHD; Etiqa Insurance; AIG Malaysia; Zurich General; Allianz General |
|
Customization scope |
Free report customization (equivalent to up to 8 analysts' working days) with purchase. Changes or additions to the scope of the country, region, and segment are possible. |
|
Pricing and purchase options |
Avail yourself of customized purchase options to meet your exact research needs. Explore purchase options |
Malaysia Health Insurance Market in Terms of NBP Report Scope
|
Report Attribute |
Details |
|
Market size value in 2025 |
USD 151.31 million |
|
Revenue forecast in 2030 |
USD 257.93 million |
|
Growth rate |
CAGR of 11.26% from 2025 to 2030 |
|
Base year for estimation |
2024 |
|
Historical data |
2018–2023 |
|
Forecast data |
2025-2030 |
|
Quantitative units |
Revenue in USD million/billion and CAGR from 2025 to 2030 |
|
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
|
Segments covered |
Insurance type |
|
Country scope |
Malaysia |
|
Key companies profiled |
Lonpac; Tokio Marine; Berjaya Sompo; MSIG; Generali Insurance Malaysia Berhad; AIA BHD; Etiqa Insurance; AIG Malaysia; Zurich General; Allianz General |
|
Customization scope |
Free report customization (equivalent to up to 8 analysts' working days) with purchase. Changes or additions to the scope of the country, region, and segment are possible. |
|
Pricing and purchase options |
Avail yourself of customized purchase options to meet your exact research needs. Explore purchase options |
Malaysia Health Insurance Market Report Segmentation
This report forecasts revenue and volume growth at the country level and provides an analysis of industry trends in each of the subsegments from 2018 to 2030. For this study, MIR Inc. has segmented the Malaysia health insurance market report based on insurance type, policy type, and distribution channel
-
Insurance Type Outlook (Revenue, USD Million, 2018-2030)
-
Malaysia Health Insurance {Gross Written Premiums (GWP)}
-
Public
-
By Policy Type
-
Corporate Policy
-
Retail Policy
-
-
-
Private
-
By Policy Type
-
Corporate Policy
-
Retail Policy
-
-
By Type
-
General Health Insurers
-
General Takaful Insurers
-
-
By Distribution Channel
-
Agents
-
Direct Business and Online
-
Bancassurance
-
Insurance Brokers
-
Others
-
-
-
-
Malaysia Health Insurance {New Business Premiums (NBP)}
-
Public
-
Private
-
-
-
Policy Type Outlook (Revenue, USD Million, 2018 - 2030)
-
Corporate Policy
-
Retail Policy
-
-
Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)
-
Traditional Distribution Channels
-
Digital/Online Distribution Channels
-
Related Reports
FAQ'S
For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:
Within 24 to 48 hrs.
You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email
You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.
Discounts are available.
Hard Copy