The average premium collected for motor insurance dipped slightly last year, even as the sector saw a 17.3 per cent increase in underwriting profit to $59.1 million.
At its annual results briefing on Tuesday, the General Insurance Association (GIA) said the average motor premium collected last year was $1,250, down from $1,280 in 2012. The association attributed the slight dip to more insurers entering the marketplace, and said this trend is likely to continue.
As a whole, the motor insurance sector collected $1.22 billion in gross premiums, a 2 per cent drop from 2012.
Said GIA president AK Cher: "The GIA will continue to work with our various stakeholders to ensure that motor claims are effectively managed and premiums continue to stabilise."
Singapore's domestic general insurance industry grew 4.5 per cent to $3.5 billion in total gross premiums. Underwriting profit declined by 1.1 per cent to $285 million, but the overall loss ration improved to 53.2 per cent, compared to 53.9 per cent in 2012. Loss ratio reflects the health of an insurance company - it refers to the difference between the ratios of premiums paid to a company and the claims settled by the company.
In other sectors, gross premiums for work injury compensation rose by 10 per cent to $369 million, but is underwriting profit dropped 41.2 per cent to $3 million.
Gross premiums for health insurance grew by 21.4 per cent from $256.3 million in 2012 to $311.2 million last year. However, its underwriting profit fell by 34 per cent to $8.3 million.