Singapore:general insurance sector achieves stable growth, more claims paid out in 2019

| 26 Mar 2020

The General Insurance Association of Singapore (GIA) announced that the sector achieved stable growth with 7.6% annual growth in gross written premiums, totalling S$4.10 billion as at 31 December 2019. The sector paid out 12.2%, or S$159 million, more in insurance claims in 2019, which contributed to the sector recording an underwriting loss of S$28 million.

The top five segments, which represent 70% of the general insurance market, recorded a combined underwriting loss of S$43.4 million. The Association undertook several key developments in 2019 to mitigate claims cost inflation and manage evolving risks. This includes launching the GIA Insurance Fraud Tip-off (GIFT) reward scheme to combat insurance fraud, starting developmental work on the new GIA Easy Accident Reporting System (GEARS), and advancing sector engagements with key stakeholders such as the Monetary Authority of Singapore (MAS) and the Life Insurance Association, Singapore (LIA Singapore).

Key highlights from the FY2019 industry results:

  • Motor insurance – Despite paying out 7.6% more in claims and recording an underwriting loss, average motor premiums reduced in 2019 to provide consumers with continued access to affordable protection. The sector insured a vehicle population with higher risk profiles – reflected in the 1.4% increase in total accident reports for the year.

 

  • Health insurance – Now the second largest general insurance segment. Underwriting loss narrowed to S$11.2 million in 2019, improving by approximately 75% from 2018. The sector also saw a continued increase in total claims pay-out of 8.1% for policyholders requiring medical treatments. Doing more to manage rising healthcare costs and claims cost inflation continues to be a focus for the sector.

 

  • Employers’ liability insurance (formerly known as WIC insurance) – To enhance protection for workers as part of driving Singapore’s healthier and safer workplace ambition, the sector recorded 8.9% increase in gross written premiums and paid S$8.29 million more in work injury compensation as the number of non-fatal injuries increased by 5%. In preparation for the new Work Injury Compensation Act (WICA) taking effect in September 2020, the sector has begun work on an approved policy wording and a Data Exchange Portal for more efficient claims processing.

 

Read other news:

Coronavirus updates for the insurance industry

Malaysia:Life insurance industry grew 14.19% in New Business Total Premiums to RM11.8 billion in 2019

AIA reports 6% growth in new business value for 2019

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