The Malaysian insurance office landscape has shown varied dynamics over the past decade. From 2013 to 2023, the number of insurance offices decreased from 656 to 605 units, reflecting an average annual decline of approximately -1.37%. The industry faced notable volatility, with year-on-year changes fluctuating, such as the significant drop by -5.76% in 2020 and a subsequent partial rebound with a 4.58% increase in 2022. The recent past suggests a relatively moderate decline, with 2023 marking a -0.82% year-on-year reduction.
Looking ahead, forecast data points suggest a continued downward trend. From 2024 to 2028, the projected 5-year CAGR stands at -0.62%, indicative of a gradual but persistent contraction, leading to an estimated 579.45 units by 2028. This translates to a total expected shrinkage of around -3.09% over the forecast period.
Future trends to watch for include:
- Technological advancements driving digital transformation, potentially reducing the need for physical offices.
- Regulatory changes within the insurance sector that may impact operational structures and office distribution.
- Market consolidation and potential mergers or acquisitions influencing the number of active offices.
- Shifts in consumer behavior towards online platforms affecting the demand for physical office locations.