AS Malaysia celebrates Malaysia Day, we are reminded of how unity has shaped our nation and how it has grown stronger through the years. Just as the country continues to evolve to meet the changing needs of its people, insurance has also progressed, playing an important role in safeguarding lives, livelihoods, and futures.
Looking back to as far as the 18th century and tracing the journey of today, Liberty General Insurance reflects on how protection has adapted throughout its time in Malaysia.
Pre-Merdeka era (18th century – early 20th century)
Insurance may seem more of a modern perk, but its history in Malaysia surprisingly, goes as far back as the late 18th century through the British trading system. Managed by British companies, protection was catered to colonial businesses and trade.
However, local endeavours like agriculture and fishing were largely excluded. Any risks were shouldered by families or communities, reflecting how insurance in its early form was more of a colonial safeguard than a protection for its people.
As Malaya moved towards its independence in 1957, the insurance industry went through a change to suit the country’s growing economic needs. Still, insurance in Malaya was fragmented as it was still largely managed by foreign companies with minimal regulation.
Post-Merdeka to Malaysia Day era (1960s–1990s)
Following independence and the formation of Malaysia in 1963, the country experienced rapid urbanisation – from car ownership to homebuilding. With the growth comes a demand for protection of the people’s belongings and family security. The Insurance Act 1963 ensured more local ownership and opportunities, laying the foundations of a more Malaysian insurance landscape.
By the 1980s, insurance was seen as a necessity for the growing urban population. Products became more diverse ranging from life insurance and motor coverage to health and business protection.
In the 1990s, the legal framework continued to evolve. The Insurance Act 1996 was a game changer for the country’s insurance landscape at the time, introducing a more structured, transparent, and consumer-focused industry in the name of financial stability.
Additionally, insurance started to play a role in enabling social mobility. The right form of protection helped families secure homes through mortgage protection, ensured children’s education through savings-linked policies, and provided financial security in times of illness or death.
The modern era (2000s – early 2020s)
This era saw a growth in SMEs and entrepreneurs, as they became vital for Malaysia’s growing economy. Insurance companies adapted to protect not just family assets, but sought to protect the businesses built that support family livelihoods.
It was also an era where technology was starting to grow rapidly in the age of smartphones, computers, and e-commerce. Malaysians faced new risks including cybersecurity, online scams, and vulnerabilities of digital entrepreneurs, freelances, and gig workers.
By introducing the Financial Services Act 2013, Malaysia ensured that financial regulations were fit for the modern era. It made sure consumers were protected, bringing fairer business practices to stronger consumer rights.
Additionally, protection had to expand beyond the physical, so insurance companies evolved by offering flexible safety nets and innovative solutions for the modern world.
Today
Protection has become an everyday part of Malaysian life, woven into families, businesses, and communities. From daily commutes to flying abroad, from running a business to providing for your loved ones, insurance stands as a constant partner that helps Malaysians thrive with peace of mind.
Building on this journey, Liberty General Insurance continues to stand alongside Malaysians as a trusted partner in protection. With solutions designed to meet the diverse and evolving needs of Malaysians – whether it’s safeguarding homes, protecting businesses, or supporting drivers with digital-first services, Liberty remains a constant presence in everyday life. By continuing to innovate with flexible motor, home, and business solutions, Liberty ensures that protection keeps pace with the way Malaysians live, work, and move forward.
Safeguard Malaysia’s tomorrow, together
From colonial-era Malaya to the fast-paced nation of today, insurance has come quite a long way. It has safeguarded families, enabled local businesses to flourish, and adapted to protect Malaysians as they progress through life.
As the country commemorates Malaysia Day, building on the recent National Day celebrations, Liberty reflects on how unity and progress continue to shape the nation – and how protection has grown alongside it.