Malaysia Accident Insurance Market Size (Gross Written Premium, New Business Premium), Share, & Trends Analysis Report, By Insurance Type (Public, Private), By Policy Type (Corporate, Retail Policy), By Distribution Channel, And Segment Forecasts, 2025 - 2030

Market Size & Trends

The Malaysia accident insurance market size in terms of Gross Written Premium (GWP), was estimated at USD 2.15 billion in 2024 and is expected to expand at a compound annual growth rate (CAGR) of 14.33% from 2025 to 2030.

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

The growth of industry is driven by the increasing number of road accidents, rising medical costs, and a growing awareness of the importance of accident insurance. According to Sun Media Corporation report, Malaysia has witnessed a significant increase in traffic accidents and fatalities. The data indicates that the number of reported traffic accident cases surged to 598,635 in 2023, up from 545,588 in 2022. This represents an increase of approximately 9.7% year-over-year. The number of deaths resulting from traffic incidents more than doubled, increasing from 6,080 in 2022 to 12,417 in 2023.

Private accident insurance is becoming increasingly popular as more individuals seek additional coverage beyond what public systems provide. This trend is largely driven by rising disposable incomes, which allow consumers to invest in more comprehensive insurance solutions. 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. The integration of technology in claims processing and customer service has also enhanced accessibility and efficiency, making it easier for consumers to obtain and manage their policies. These factors contribute to a strong growth trajectory for both public and private accident insurance in France.

Furthermore, as per the grand view research analysis and estimates there is a steady growth in the profitability of the accident insurance market indicating further expansion.

Private Accident Insurance Profitability Estimates

Source: Grand View Research Estimates

The Malaysian government has implemented various policies aimed at promoting private sector participation in accident & casualty recovery delivery.

• According to the Asian (RE) Insurance Market Report published by Malaysian RE, the personal accident loss ratio in 2018 was 33%, 32% in 2019, and 27% in 2020.

• According to the same source, the combined ratio for the overall non-life insurance & takaful industry was 89.6% in 2020, 93.8% in 2019.

Moreover, economic stability significantly influences the expansion of the accident insurance sector. As people are inclined to purchase supplementary private accident insurance policies to enhance their basic public coverage. For instance, the National B40 Protection Scheme was launched in January 2019, with an initial fund size of USD 486 million. This information indicates a significant financial commitment by the government to support low-income households. The scheme is available free to around4.1m low-income households or the bottom40% of the population, the Ministry of Finance announced.

Government Funding for Accident Victims in Malaysia

Source: Grand View Research Analysis

A notable instance of technological advancements influencing the Malaysia accident insurance market is the adoption of digital services by leading insurers. For instance, Tokio Marine eApplication Portal streamlines the claims management process, allowing for efficient submission and tracking of claims. This online service reduces administrative workload, enabling agents to focus more on client engagement and business development.

Moreover, increasing launch of new products on the market to cater to the growing demand is supplementing Malaysia accident insurance industry growth. For instance, in April 2025, MSIG Malaysia introduced an addition to its personal accident insurance portfolio by launching the nation's first assisted living add-on. This innovative product is designed to provide financial support to policyholders who are unable to perform daily living activities due to an accident or injury. The MSIG PA Add-On: Assisted Living offers financial support of up to USD 5,628.25 per month for a maximum of 12 months per injury, covering essential nursing care at a registered nursing home, care centre, or at home by a licensed nurse

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 Malaysia 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 & acquisition activities is moderate, and geographic expansion of the industry is high.

The degree of innovation in Malaysia 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 of public and private. Public insurance is further segmented 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 (BNM), including the Financial Inclusion Framework aimed at enhancing insurance penetration, are expected to boost the 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 of 54.44% and 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 higher 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 the driven by specific consumer preferences and market characteristics, even as online platforms experience 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, identified as a developing market, is described as more traditional and shows a preference for group travel. Traditional agencies have also adapted by organizing their own 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 Malaysia 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 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

Recent Developments

• In June 2024, SeaMoney and Zurich General Insurance Malaysia Berhad together launched a new personal accident insurance plan 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, in January 2024, a new branch was opened in Melaka, reinfocing Generali's commitment to providing comprehensive services nationwide.

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 country level and provides an analysis on industry trends in each of the sub segments from 2018 to 2030. For the purpose of this study, Grand View Research, Inc. has segmented the Malaysia accident insurance market report on the basis of 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