The general insurance sector of Singapore has recorded a year-on-year growth of 15 % combined for both offshore and domestic segments, according to the General Insurance Association (GIA) in its latest financial report. This resulted in a rise for gross written premiums totalling SG$9.34 billion. Underwriting performance within the sector, both overseas and at home, also grew by 20.3%.
The domestic segment recorded a growth of 9.6% in gross written premiums for a total of $4.84 billion. Underwriting profit at home also enjoyed its second consecutive year of growth with 14.8% YoY to SG$301.6 million.
Across Singapore’s various business segments, health insurance recorded the best growth with a 19% increase in gross written premiums. Total underwriting profit for the segment also recorded an increase of SG$69.6 million, an uptick from the underwriting loss experienced in 2021.
Property insurance within the sector also grew by 6% to the tune of SG$758.3 million.
On the flip side, the motor insurance segment fell by 7.1% to SG$1.1 billion, in addition to recording an underwriting loss of SG$21.6 million. GIA attributes this to rising accident rates that trended up to pre-pandemic levels, increase in average claim bill sizes, the impact of certificate of entitlement (COE) on new car sales, and inflation affecting repair costs.
Despite the loss, the motor segment is still the biggest slice of the general insurance pie, with a market share of 22.2%. This is followed by health at 18.4%, property at 15.7%, employer’s liability at 8.7%, and travel at 4.4%.
GIA president Ronak Shah said that the general insurance sector’s performance has reinforced Singapore as the leading insurance hub within the region.
“Despite challenges posed by the pandemic, the sector has displayed resilience, adaptability, and innovation, enabling us to continue serving our customers and supporting economic growth. As we look ahead into 2023, we remain optimistic in our sector's ability to navigate and excel in a rapidly evolving landscape," Shah said.
Recently, the association announced that it will be extending its use of the Shift Claims Fraud Detection, an AI-powered anti-fraud insurance solution to continue to combat insurance scams.
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