How Online insurance industry is positioned in Malaysia?
Malaysia Online Insurance Market display a stable growth since 2016 growing at single digit CAGR ~%. Online Insurance market revenue stood at RM ~ Mn at 2018 and witnessed massive growth at a CAGR of ~% due to the impact of Covid-19 pandemic. Out of total insurance market, online has very insignificant share standing at ~X%. The online insurance industry is still in the nascent stage and insurance market in Malaysia is also still in the growth stage, growing at a CAGR of ~XX%. The online market players have been segmented into three segments, online insurance and online aggregator’s insurance providers. The major regulatory bodies are PIHM, Bank Negara Malaysia, PIAM among others managing the insurance industry and also managing the online insurance market. The major segments in insurance industry are General Insurance, General Takaful, Life Insurance and Family Takaful.
The market for both online captive players and online aggregators is concentrated among very limited number of players. The top 4 players in the captive segment covers more than three fourth of the total market share in terms of gross direct premiums. While in case of online insurance aggregators, the top two players owing majority of the market. The government’s policy of insuring the uninsured has progressively pushed insurance penetration in Malaysia and led to a proliferation of insurance schemes.
Malaysia Online Insurance Industry Segmentation Basis Gross Premium
Insurance market segmentation Product Type (Life Insurance, Family Takaful, General Takaful, General Insurance)
Online Insurance Industry in Malaysia can be segmented based on Product Type: Life Insurance, Family Takaful, General Takaful, and General Insurance where General Insurance accounting for highest share at XX% as compared to Life Insurance, Family Takaful and General Takaful on the basis of revenue generated in the year 2022. General insurance increased acceptance for online registrations, and expected to dominate the online insurance market in Malaysia owing to increased focus of companies on sales of motor, travel, personal accident, etc.
General Insurance segmentation by product type (Personal accident, Employers’ liability, Motor Insurance, and Medical & Health)
General insurance industry in market can be segmented basis on product type: Personal accident, Employers’ liability, Motor Insurance, and Medical & Health where Motor Insurance has the highest share-acquiring majority of the market share at ~XX% as compared to Personal accident, Medical & Health and employer’s liability. Motor Insurance, constitutes majority of market due to increased registrations, awareness of online insurance, less dependency on agents system when compared to life insurance where an agent model is preferred.
By Gross direct premium (Aggregators, Company owned website, and financial advisors)
Online Insurance Industry in Malaysia can be segmented based on Premiums: Aggregators, Company owned website, and financial advisors where financial advisors accounting for majority share at XX% as compared to others on the basis of Gross direct premium in the year 2021.
Insurance market segmentation based regional split (Penang, Klang Valley & Selangor and Johor)
Online Insurance Industry in Malaysia can be segmented based on regions: Penang, Klang Valley & Selangor and Johor where Klang Valley & Selangor accounting for majority of the market share at XX% as compared to Penang and Johor on the basis of revenue generated in the year 2021. Klang Valley has the highest urban working population in Malaysia, which forms the majority of insurance buyers. Majority of the companies are headquartered in Kuala Lumpur leading to an increased accessibility.
Malaysia Online Insurance Industry Covid Impact
Malaysia online insurance industry has seen double digit growth at the CAGR of XX% since 2019. The pandemic experience has increased consumer awareness of the need for risk protection, in particular for healthcare. Recent trends reveal that people prioritize insurance post COVID-19 and that they prefer moving their purchase journey online. ReMark’s survey showed that online sales have boomed in Malaysia with more than twice as many purchases via contactless channels in 2020 (26.9%) than in 2019 (12.5%), and it’s unsurprisingly the youth who are leading the charge, given their interest in life and medical products and comfort in using automated technology have both increased.
While sales of health insurance picked up, travel insurance suffered due to various countries’ imposition of travel bans and the public’s general reluctance to engage in non-essential travel.
URUS was a holistic assistance package to assist vulnerable borrowers impacted by COVID-19 who continued to experience cash flow difficulties. It offered repayment assistance and development support, including personalized financial plans, financial education programs and avenues to supplement incomes and obtain other development support via referrals to AKPK’s Social Synergy Network.
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Comparative Landscape In Malaysia Online Insurance Market
Competition is observed to be concentrated in the Malaysia Online Insurance Market with majority of market being acquired by two or three largest players. The comparison has been built on multiple factors which includes monthly and daily active users, financial parameters, company information, different models among others.
Malaysia Online Insurance Market Future Outlook And Projections
Malaysia online insurance market is expected to expand with a double digit CAGR at XX% in between 2021 and 2026 on the basis of Gross Direct Premium. It is anticipated that Malaysia online insurance market will grow owing to factors such as increased government focus, technological developments, development of Aggregators and increased convenience. The market will pick up for both Motor and Non-Motor Insurance. After the pandemic, it is being forecasted that technology, in the form of automation and personalization, will dominate the insurance landscape, prompting Insurtech players to further diversify their products and services, and forcing incumbent Insurance Companies to adapt to technological advancements. General Insurance will dominate the Online Insurance Market in Malaysia owing to the increased focus of companies on sales of motor, travel, personal accident, etc. online. Companies are developing these categories at present.
Key Segments Covered in Malaysia Online Insurance Industry
Malaysia Online Insurance Market
By Product type of Insurance basis Gross Premium
Life Insurance
Family Takaful
General Takaful
General Insurance
By Product type of General Insurance basis Gross Premium
Motor Insuranc
Medical & Health
Employer’s liability
Personal accident
By Type of Entity basis Gross Premium
Captive Players
Aggregator Players
Financial Advisors
By Region basis Gross Premium
Penang
Johar
Klang Valley & Selangor
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Key Target Audience
Insurance players
Online Insurance Captive players
Online Insurance Aggregators players
Insurance Technology provider
Insurance users
New Entrant in Online Insurance space
Associated or affiliated Banks with Insurance entities
Regulatory Bodies for Insurance entities
Time Period Captured in the Report:
Historical Period: 2016-2021
Forecast Period: 2022-2026F
Companies Covered:
Online Insurane Aggregators
Policy Street
Bjak
Qoala
Online Insurance Captive Players
Liberty Insurance
Axa Affin Insurance
eTiQa Insurance
AIA Malaysia
Takaful Ikhlas
Tune Insurance
Zurich Insurance
Chubb Insurance
Allanz Malaysia Berhad
FWD Takaful
For more insights on the market intelligence, refer to the link below:-
Malaysia Online Insurance Market
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