THE general insurance sector in Malaysia saw a 7.8% increase in gross written premiums, reaching RM21.4 billion in 2023, as reported by the General Insurance Association of Malaysia (PIAM).

Motor and fire insurance lines continued to dominate premium contributions, with motor insurance maintaining its position as the largest segment, commanding 45% of the total premium share.

Despite the uptick in premiums, the industry faced a 26% decline in underwriting profit, totaling RM1.16 billion.

This downturn was largely attributed to decreased profitability in motor and fire insurance lines.

Motor insurance specifically incurred an underwriting loss of RM156 million, with challenges stemming from inflationary pressures on vehicle spare parts and heightened road accident rates.

Fire insurance, comprising 21% of total premiums, experienced an 8% increase in premiums but saw a decline in underwriting profit due to volatile weather events and rising reinsurance costs.

The industry settled an average of RM21 million daily on total insurance claims in 2023, reflecting an 11% year-on-year increase.

Motor claims remained a significant component of total payouts, averaging RM13.4 million per day over the past decade.

In 2023, motor claims surged to RM15.1 million per day, marking the highest payout in the recent five years. This underscores the challenges facing the industry despite its growth trajectory. — TMR