SINGAPORE, 22 MARCH 2024 – The General Insurance Association of Singapore (GIA) has reported growth in both domestic and offshore general insurance divisions year over year, totaling S$10.2 billion in gross written premiums, an increase of 10.1%. The industry’s continued expansion confirms its importance and its function in safeguarding companies and customers. An underwriting profit of S$608.1 million was reported by the sector.
Gross written premiums in the domestic segment increased by 7.3% to S$5.2 billion, but underwriting profit decreased by 11.2% to S$262.9 million. As the industry continues to safeguard Singaporean consumers and assist in helping them rebuild their lives and property, net incurred claims increased by 44%. This increase was driven by an increase in claims across major business segments. Specifically, as traffic accidents increased in 2023, the motor segment witnessed the highest increase in claims, rising by 73.3% to S$573.4 million.
“The sector’s sustained growth this year reflects its resilience and underscores our enduring commitment to safeguarding the interests of consumers and businesses. Despite the positive results, we remain keenly aware of economic headwinds and the continued threat posed by fraudulent activities. Protecting and supporting our motoring public will remain a key focus for the sector in the coming year.” said Mr. Ronak Shah, President of GIA.
The industry also introduced its new online Vehicle Accident Report History (VARH) service earlier this year, building on the popularity of the GIA Easy Accident Reporting System (GEARS). With the help of this service, automobile owners can purchase a report that details the dates of accident reports filed by drivers or owners during the last six years, giving potential buyers of their vehicles a more transparent purchasing and selling experience.
GIA also produced a sector-wide video campaign to raise public education on motor touts, in partnership with the Singapore Police Force.
Across the various business segments, travel insurance emerged at the top with a 37.6% increase in gross written premiums. This is in line with the strong recovery in business and leisure travel globally.
The health segment recorded an increase of 12.1% in gross written premiums. However, it concurrently observed an underwriting loss of S$10.6 million, reversing the profit experienced in 2022. This was contributed by the 10.3% increase in claims, signifying rising healthcare costs.
Gross written premiums for employer’s liability observed a 10.2% increase, consistent with the expansion of resident and foreign labour market. The segment achieved an increase in underwriting profit to S$45.7 million, as workplace safety and deaths in workplace fell in Singapore last year.
Looking ahead, the sector remains committed to meeting consumers and businesses’ evolving needs and ensuring protection remains accessible amid a more volatile global landscape. Beyond ongoing fraud-mitigation initiatives, the sector continues to proactively assess and implement approaches to safeguard Singaporeans’ interests.