Malaysian general insurers face worst H1 in recent years

Gross direct premiums dropped 3.6% to $2.05b.

The Malaysian general insurance industry suffered its steepest half-year plunge in recent years as gross direct premiums dropped 3.6% to $2.05b (MYR8.6b), according to the General Insurance Association of Malaysia (PIAM).

Motor insurance went down 7.4%, triggered by the over 40% decrease in total vehicle sales for H1 2020. Personal accident insurance recorded the largest fall at 13.4% to $124.6m (MYR522m) whilst marine aviation and transit (MAT) insurance dipped 0.7% to $191m (MYR800m), hit by the 9.0% and 8.7% contractions in cargo and offshore oil-related classes respectively.

Despite the significant reduction in traffic movements nationwide during the movement control order (MCO) and its extended duration, total motor claims paid out by insurers remained high at $573m (MYR2.4b) for the first half of the year. 

On the other hand, fire insurance grew 2.2% to $420m (MYR1.76b) whilst medical and health insurance notched up 3% to $140m (MYR586m).

“General insurers are reviewing the financial impact faced by consumers making the necessary adjustments on a case by case basis and exploring options to ensure insurance protection continues to be available to them under these trying circumstances,” the association said.

Moreover, PIAM expects further downturns for the full year “with the road to recovery a long and arduous one ahead.”