General insurers studying EV ecosystem to address higher repair costs, limited readiness

KUALA LUMPUR (Oct 8): Malaysia’s general insurers are closely monitoring developments in the electric vehicle (EV) segment as rising adoption and limited repair ecosystem pose challenges for product pricing and risk management, said the General Insurance Association of Malaysia (PIAM).

PIAM chief executive officer Chua Kim Soon said the industry is still building its understanding of EV-related risks, including higher cost and complexity of repairs, battery safety, and limited workshop readiness.

“This is a new technology. We need to have enough data and experience in it so that we are able to design the right kind of products. We are able then to price the product accurately, so that then that will be a fair pricing to the consumer,” Chua said during a briefing on the industry's performance in the first half of 2025 (1H2025).

He said PIAM has observed increased sales in EVs, and the sales are expected to accelerate further with the introduction of national EV models such as the Proton e.MAS 5.

In response, the industry is working more broadly on the EV ecosystem, including assessing whether workshops are equipped to handle EV repairs and whether standards set by the Road Transport Department (JPJ) are in place to ensure proper handling and safety, Chua said.

“We are looking at whether private garages or workshops are ready to repair EVs, whether there is also a debt to second life for repair and so on and so forth,” he said.

These efforts are also aimed at ensuring a sustainable ecosystem that supports Malaysia’s transition towards the government’s net-zero carbon aspiration, according to Chua.

Malaysia's general insurance industry saw its underwriting profit jump 32% year-on-year (y-o-y) in the first half of the year, driven by strong premium growth and better underwriting discipline.

Overall, the industry recorded a 4% y-o-y increase in gross written premiums to RM12.3 billion in 1H2025. Motor insurance remained the largest general insurance segment, with a 42.8% share, followed by fire insurance (21.1%) and personal accident (6.4%).