However, PIAM said there was a 23% drop in motor theft last year, from 20,005 units of all vehicle classes in 2016 to 15,323, the Malaysian Reserve reported.
The business daily said that on a daily basis, RM14.7 million was paid by insurers for motor claims on property damages, bodily injuries and theft.
Overall net claims incurred ratio increased to 57.5% in 2017 from 54.5% in 2016, which means for every ringgit of premium, the industry paid 57.5 sen for claims.
The industry also registered a 31.3% year-on-year drop in underwriting profit to RM1.05 billion, from RM1.53 billion in 2016.
The motor as well as medical and health insurance classes both recorded losses at RM356 million and RM34 million respectively, while other classes remained profitable last year.
The report said PIAM, which sees a challenging year ahead, will intensify its communications and awareness efforts to bring insurance closer to the people which include campaigns and outreach programmes.
Meanwhile, PIAM said it would work together with the authorities to reduce road accidents nationwide. Up to September 2017, there were 5,083 deaths from 400,788 traffic accidents.
PIAM has set a target to reduce national road accidents by 20% for 2018 and 50% from 2020 onwards.
PIAM chairman Antony Lee said awareness is a big issue for the industry.
He said there has been a drop in the number of people buying insurance for personal accidents.
“Motor insurance is compulsory, but if we look at personal accidents, for example, travel insurance actually shrank after the introduction of the opt-in ruling by the Malaysian Aviation Commission.
“The number of people buying travel insurance has dropped a lot,” he added, saying only 20% of Malaysians were insured against personal accidents.
Lee also singled out flood insurance for cars which have less than a 5% take-up rate.
The two largest classes — motor and fire insurance — both registered growth last year, but they were weighed down by a double-digit drop in marine aviation and transit (MAT) and personal accident insurance.
The biggest segment, motor insurance, only managed to grow 1.9% to RM8.32 billion of GWP, giving it a market share of 47.1%.
Meanwhile, the second-largest class — fire insurance — recorded a 4.2% growth at RM3.41 billion, with a market share of 19.3%.
Medical and health insurance grew by 7.1% with premiums reaching RM1.1 billion, while the miscellaneous class comprising bonds, liabilities, engineering and workmen’s compensation grew at 0.2% with GWP totalling RM2.35 billion.
MAT and personal accident insurance dragged down the industry with a 14.6% to RM1.34 billion and 12.6% to RM1.13 billion decline respectively.
According to Malaysian Reserve, PIAM associated the decline in MAT to the weak oil and gas sector last year.
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