Affected by a challenging external environment, gross premiums of Singapore's domestic general insurance industry rose by only 0.6% last year.
Data released yesterday by the General Insurance Association of Singapore (GIA) showed that the industry's gross premiums edged up 0.6% last year to S$3.7 billion, below the 1.1% growth of the previous year. Overall underwriting profit also fell 17% last year to S$257.6 million.
GIA President Xu Yagao said at a press conference yesterday: "Over the past year, the general insurance industry faced various challenges at home and abroad. Despite economic uncertainties, the general insurance industry still achieved a good performance."
GIA data showed that, apart from a decline in gross premiums for work injury compensation insurance, all other segments recorded gross premium growth last year.
Motor insurance is traditionally the largest segment of general insurance, accounting for about 32% of the market last year. Gross motor premiums rose 1% last year to S$1.2 billion, while profit fell to S$87.4 million.
Motor premiums also remained stable last year, with the average premium edging up 0.6% to S$1,202. Motor accident claims paid by insurers continued to decline, falling 8.5% last year to S$494.4 million, while the loss ratio of claims to premiums also improved to 53.9% last year.
While the vehicle population decreased slightly to 956,430, motor accident reports increased, from 149,511 reports the year before to 161,361 reports last year (a single accident may involve two or more accident reports).
GIA Chief Executive Zhao Qingbiao said in an interview that the association is looking into the reasons for the increase in motor accident reports, noting that this may be related to the rise of private hire car services.
In addition to motor insurance, general insurance also includes work injury compensation insurance, fire insurance, marine cargo and hull insurance, personal accident insurance and health insurance.
Due to the slowdown in construction activity in the private sector and intensified competition among insurers, gross premiums for work injury compensation insurance fell 9% last year to S$352.5 million, and profit dropped 34% to S$24.7 million.
Marine cargo gross premiums rose
Meanwhile, gross premiums for marine cargo insurance rose 6.9% to S$216.9 million, while gross premiums for hull insurance increased from S$431.8 million the year before to S$485.8 million last year.
Zhao Qingbiao pointed out that although Hanjin Shipping's announcement of bankruptcy last year sent shockwaves through the shipping industry, the event had little impact on marine cargo and hull insurance. The segment's loss ratio last year was 57.3%, not far from the 57.1% of the previous year.
Xu Yagao also said the association will explore the use of digital technology to help its members respond to challenges in a rapidly changing environment.
The association launched a Fraud Management System on January 9 to help members identify motor insurance fraud. He revealed that the system will soon also be applied to travel insurance claims.
GIA Chief Executive Zhao Qingbiao said in an interview that the association is looking into the reasons for the increase in motor accident reports, noting that this may be related to the rise of private hire car services.
Source: Lianhe Zaobao, 2016-03-15