The motor insurance segment suffered underwriting losses of SG$12.6 million in the first half of 2018, due to a surge in claims, according to the General Insurance Association (GIA) of Singapore.
This is the third consecutive quarter the motor business has incurred losses, a statement by the insurance association said.
While the number of reported motor accidents fell by 4.3% year-on-year, this was overshadowed by the value of incurred claims, which spiked 11.8% to SG$291.3 million. The loss was also compounded by a 2.4% decrease in gross premiums to SG$600.9 million.
Motor insurance makes up over a quarter of Singapore’s general insurance market, GIA said.
In response to this development, the GIA will conduct public awareness and education efforts pertaining to road safety, as well as work closely with stakeholders such as the Singapore Road Safety Council (SRSC) on their road safety campaigns.
The GIA will also work to counter motor insurance fraud by enlisting the help of technology.
“Our top priorities include working with key stakeholders to reduce the severity and frequency of motor accidents, and leveraging digital technologies to continuously develop and enhance the GIA Fraud Management System, to lower and mitigate claims costs inflation,” said Karl Hamann, GIA president.