Malaysia Accident Insurance Market Size (Gross Written Premium, New Business Premium), Share, & Trends Analysis

Market Size & Trends

In terms of Gross Written Premium (GWP), the Malaysian accident insurance market is expected to grow from 2024 to 2.15 billion USD at a CAGR (compound annual growth rate) of 14.33%.

In terms of New Business Premium (NBP), Malaysia's accident insurance market was estimated at 0.15 billion USD in 2024 and is expected to grow at a CAGR (compound annual growth rate) of 3.79% from 2025 to 2030.

The increasing number of road accidents, rising medical costs, and growing awareness of the importance of accident insurance have driven the industry to grow. Sun Media Corporation reported that Malaysia's number of reported traffic accident cases and fatalities rose to 598,635 in 2023, up from 545,588 in 2022. The number of deaths resulting from traffic incidents more than doubled, rising from 6,080 in 2022 to 12,417 in 2023. This number represents an increase of approximately 9.7% year-over-year.

As more people seek additional coverage beyond what public systems provide, private accident insurance is becoming increasingly popular. Increasing disposable incomes, which allow customers to purchase more comprehensive insurance options, are the main driving force behind this trend. Furthermore, the growing number of accidents and mental health-related issues has led employers to improve their employee benefits packages, including offerings for accident insurance coverage. Consumers can now obtain and manage their policies more easily thanks to the technology integration in claims processing and customer service. フランスの公共および民間交通事故保険は、これらの要因によって急速に成長しています。

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

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 Malaysian accident insurance markets operate 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 Malaysian accident insurance market is significantly moderate, driven by digitalization, regulatory reforms, and personalized 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, fostering 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 accident insurance 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 accident 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. The market further divides public insurance into corporate policy and retail policy.

The public segment dominated the market and accounted for the largest revenue share of 82.37%) in 2024 and is anticipated to register the fastest growth over the forecast period. This is due to the rising awareness among consumers regarding health and safety, which has been further amplified by increasing medical costs and an aging population. Furthermore, regulatory initiatives by Bank Negara Malaysia's (BNM), including the Financial Inclusion Framework aimed at enhancing insurance penetration, are expected to boost access to PA&H products. This framework seeks to increase overall insurance coverage from the current 4.4% to approximately 5% by 2026, thereby expanding the market base for public accident insurance.

The private sector is expected to grow at a significant CAGR over the forecast period. The growth of private accident insurance in Malaysia is primarily driven by the increasing awareness of the importance of financial protection against accidents. Many individuals are now recognizing the need to safeguard their income and savings against unforeseen events, such as accidents, which can result in disability or death. In addition, insurance companies are now offering more comprehensive and affordable personal accident insurance products, which is attracting more customers. For instance, insurers such as Pacific Insurance Berhad, Berjaya Sompo, and Allianz General Insurance Company (Malaysia) Berhad are providing a range of benefits, including accidental death, permanent disablement, medical expenses, and hospitalization benefits.

For instance, below is the product offered by Lonpac, a private insurer

Policy Type Insights

The corporate policy segment dominated the market in 2024 and accounted for the largest revenue share at 54.44%. It is anticipated to register significant growth 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 accident insurance as part of their overall benefits package. Companies recognize that providing adequate coverage protects employees and enhances job satisfaction and retention rates. Furthermore, the rising costs of compensation claims have prompted businesses to seek more effective risk management strategies through corporate accident insurance policies.

Retail policy segment is expected to register significant growth over the forecast period, driven by the growing regulatory changes driving the accident insurance 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 insurance. Urbanization leads to more accidents due to increased city traffic and activity levels, prompting residents to secure adequate coverage.

Private Health Insurance Market (GWP), by Distribution Channel Insights

The traditional distribution channels dominated the market in 2024, driven by specific consumer preferences and market characteristics, even as online platforms experienced rapid growth. These channels typically involve intermediaries such as wholesalers, distributors, and retailers, through whom consumers access products and services, driving an indirect relationship between brands and their customers. Furthermore, group travel is anticipated to remain a vital sector, especially for safety-conscious consumers, and such travel often relies on the structured offerings provided by traditional agents. For instance, Penang, a developing market, exhibits a more traditional approach and a preference for group travel. Traditional agencies have also adapted by organizing their tour packages to cater to specific customer needs, rather than solely depending on packages developed by larger entities.

Digital/online distribution channels are expected to register the fastest growth over the forecast period, primarily driven by the increasing internet penetration rate, with over 89% of the population having access to the internet. The Malaysian government has been proactive in supporting the growth of digital/online distribution channels. Initiatives such as the Malaysia Digital Economy Corporation's (MDEC) Business Digitalization Initiative have helped to drive the digital transformation of micro, small, and medium enterprises (MSMEs) nationwide. In addition, the government's efforts to promote digital literacy and online payment systems have also contributed to the growth of e-commerce in Malaysia. The growth of e-commerce marketplaces such as Shopee, Lazada, and PG Mall has also contributed to the expansion of digital/online distribution channels in Malaysia. These platforms have provided businesses with a ready-made platform to sell their products and reach a broader customer base, driving the growth of e-commerce in the country.

Key Malaysia Accident Insurance Company Insights

The private accident 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, MSIG, all competing by offering flexible, personalized coverage and enhanced customer experience

Key Malaysian Accident Insurance Companies

• Lonpac
• Tokio Marine
• Berjaya Sompo
• MSIG
• Generali Insurance Malaysia Berhad
• AIA BHD
• Etiqa Insurance
• AIG Malaysia

Recent Developments

• In June 2024, SeaMoney and Zurich General Insurance Malaysia Berhad together launched a new personal accident insurance plan that has been introduced on the Shopee app, starting at an affordable rate of USD 1.88 per month. This initiative aims to provide Malaysians with easier access to essential insurance coverage for unforeseen accidents and injuries.

• In October 2023, the company launched its first model branch in Seremban, offering an integrated insurance experience with both general and life insurance products under one roof. Similarly, Generali reaffirmed its commitment to providing comprehensive services nationwide with the opening of a new branch in Melaka in January 2024.

Malaysia Accident Insurance in Terms of GWP Market Report Scope

Malaysia Accident Insurance in Terms of NBP Market Report Scope

Malaysia Accident 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 the purpose of this study, MIR, Inc. has segmented the report on Malaysia's accident insurance market based on insurance type, policy type, and distribution channel

• Insurance Type Outlook (Revenue USD Billion, 2018-2030)

  • Malaysia Accident Insurance Market {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

  • Malaysia Accident Insurance Market {New Business Premiums (NBP)}

    • Public

    • Private

• Policy Type Outlook (Revenue USD Billion, 2018-2030)

  • Corporate Policy

  • Retail Policy

• Distribution Channel Outlook (Revenue USD Billion, 2018-2030)

  • Traditional Distribution Channels

  • Digital/Online Distribution Channels