General insurance sector grows 15% in 2022, health insurance sees highest growth

The general insurance sector recorded a combined increase of $9.34 billion in gross written premiums. ST PHOTO: GIN TAY

SINGAPORE – The general insurance sector in Singapore grew by 15 per cent in 2022 in terms of gross written premiums in both offshore and domestic segments, with the latter driven by growth in demand for health insurance.

The General Insurance Association of Singapore (GIA) said on Wednesday that the general insurance sector recorded a combined increase to $9.34 billion in gross written premiums.

The domestic segment recorded a stable growth of 9.6 per cent in gross written premiums, totalling $4.84 billion. This came on the back of strong uptake in the health, property and travel segments in the domestic market, with the easing of travel restrictions globally contributing to significant growth in the last segment.

Underwriting profit increased by 14.8 per cent year on year to $301.6 million in 2022, helped by strong performance in the health segment. This is the second consecutive year of growth recorded for the sector, underscoring its resilience as it emerges from the Covid-19 pandemic.

Across the various business segments including motor, travel and property, health insurance recorded the highest growth with a 19 per cent rise in gross written premiums.

The total underwriting profit for the health segment also increased by $69.6 million, reversing the underwriting loss experienced in 2021. This highlights the general insurance sector’s growing position in providing comprehensive protection through corporate health coverage, said GIA on Wednesday.

Gross written premiums for property insurance grew by 6 per cent to $758.3 million. This is reflective of the multiple high-profile fire incidents reported by the media in the past year, reinforcing the role of property and fire insurance in rebuilding lives, GIA said.

The motor insurance segment observed a decrease in gross written premiums of 7.1 per cent to $1.1 billion and an underwriting loss of $21.6 million. Contributing factors include rising accident rates, an increase in average claim bill sizes, the impact of certificates of entitlement on new car sales, and inflationary pressures on repair costs.

Meanwhile, the employer’s liability insurance segment recorded a 20 per cent fall in underwriting profit despite the 5.3 per cent rise in gross written premiums to around $420 million. This comes as 46 workplace deaths were reported last year, the highest number since 2016. More major injuries were also observed in 2022, noted the association.

GIA president Ronak Shah said: “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.”

This article has been edited for clarity.

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