EV Sales Drive 4% Growth in Malaysia’s Insurance Industry
EV Sales Drive 4% Growth in Malaysia’s Insurance Industry
The General Insurance Association of Malaysia (PIAM) has reported a positive performance for the insurance industry in the first half of 2025, with the total Gross Written Premium (GWP) increasing by 4.0% year-on-year, from RM11.8 billion in 1H 2024 to RM12.3 billion in 1H 2025. The growth was largely supported by the motor insurance sector, which saw a 5.7% year-on-year rise, climbing from RM5.0 billion to RM5.3 billion. This indicates that Malaysians are purchasing more vehicles and at higher price points. According to PIAM Chief Executive Officer Chua Kim Soon, the increase was mainly driven by the surge in electric vehicle (EV) sales.The share of EVs in total vehicle registrations hasmore than doubled, rising from 3.6% to 7.8%. With the recent launch of the Proton e.MAS 5, the association expects the EV numbers to climb even further. Despite this encouraging growth, motor insurance remains a challenging segment. It continues to be the largest line of business, making up 42.8% of total premiums, but still records underwriting losses. The combined ratio—a measure of profitability—stood at 102.2%, meaning the industry paid out more in claims and expenses than it earned in premiums. Nevertheless, this marks a slight improvement from 103.4% a year earlier. Chua highlighted that insuring EVs brings new challenges, as the vehicles come with complex battery systems, potential cybersecurity vulnerabilities, and reliance on artificial intelligence. PIAM is currently evaluating the readiness of Malaysia’s automotive ecosystem, including workshop capabilities, battery coverage, and whether JPJ recognises specific EV standards. He also noted that EV insurance premiums overseas tend to be significantly higher, reflecting these additional risks. On the safety front, Malaysia continues to face worrying accident statistics, with 115 road accident cases per 100,000 people—one of the highest rates globally. Even more concerning, over 50% of motorcyclists remain uninsured, leading to complications when accidents occur. To tackle this issue, PIAM is collaborating with the Road Transport Department (JPJ) and the Royal Malaysia Police (PDRM) to improve public education and enforcement. In a move toward digitalisation, PIAM and PDRM have jointly introduced the e-Police Reporting System, launched on 1 September 2025. This online platform allows users to file police reports for minor accidents directly via the PDRM website, simplifying the process for motorists. The system is currently in its pilot phase, limited to PLUS and North–South Highways, and has already received 114 online reports as of 3 October 2025.
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