From 2013 to 2019, the number of general insurance licensees in Malaysia remained relatively stable, fluctuating slightly from 19 units to 18 units. However, a significant drop occurred in 2020, with licensees falling to 16.15 units, and staying constant in 2021. In 2022, there was a minor recovery to 17 units, followed by a decrease to 16 units in 2023. Overall, the last two years displayed volatility with a -5.88% year-on-year variation for 2023. The Compound Annual Growth Rate (CAGR) indicates a downward trend, showing -2.33% over the past five years. Forecasted data suggests a continued gradual decline, with licensees estimated to decrease to 14.3 units by 2028, representing a -1.9% CAGR over the next five years.
Future trends to watch for include regulatory changes in the insurance industry, market consolidation, technological advancements, and shifting consumer preferences. These factors could either exacerbate or mitigate the current downward trend in the number of general insurance licensees. Understanding these elements will be crucial for predicting medium to long-term movements in this sector.
