PIAM CEO Chua Kim Soon said the growth was spurred by strong demand in the motor and fire insurance segments.
Chua said underwriting profit – profit made from selling insurance policies – climbed RM125 million to RM1.2 billion.
However, he cautioned that mounting claims expenses remain a challenge, driven by geopolitical risks, climate change, inflation, electric vehicle adoption, and rising claims frequency and severity.
He said EVs bring new risks not found in vehicles driven by internal combustion engines (ICE). Furthermore, Malaysia has had less experience with EVs, which have been in the market for only 15 years now, compared with 120 years for petrol driven cars.
“EVs are generally heavier, which means they require a longer braking distance in emergencies compared to ICE vehicles. Some models also use one‑pedal operation, which drivers need time to adjust to.
“Our studies show that the risk of an accident is higher in the first year for those who just switched from ICE vehicles to EVs because people need to get used to it,” he said at PIAM’s media briefing here today.
He said while EVs often come with Level 3 self‑driving features, they are not fully reliable, citing a Beijing experiment where a car repeatedly failed to detect a stump while reversing.
Chua also debunked misconceptions about EVs. For instance, he said, statistics show that ICE vehicles are more prone to fire and explosion than EVs.
He said the motor insurance segment saw a 5% growth in 2025, down from 6.7% in 2024. Private cars account for 82% of the motor insurance portfolio, with EVs and hybrids now accounting for 8.7% and rising quickly, boosted by popular new Proton eMAS models.
Despite the growth, he said, motor insurance remains unprofitable. The segment has been recording losses for four consecutive years since the pandemic.
The segment posted nearly RM290 million in underwriting losses in 2025, with private cars, which make up 82% of the portfolio, causing much of the strain.
Chua also noted that the overall loss ratio stood at 68%, but private motor loss experience was far higher at almost 77%, reflecting the high frequency of accidents and rising claims in this segment.