SINGAPORE: Singapore's general insurance industry posted a 2.6 per cent growth in total gross premiums to S$3.6 billion in 2015.
However, margins declined amid the economic slowdown and increased competition, resulting in a 17 per cent drop in total underwriting profit to S$325 million, according to the General Insurance Association on Thursday (Mar 17).
Underwriting profit is the amount of premiums earned after claims have been paid and administrative expenses accounted for.
The motor insurance class, which makes up 32 per cent of the general market, saw a 4 per cent drop in gross premiums to S$1.1 billion in 2015, due to heightened competition and the falling car population. On average, motor premiums fell by about 3 per cent, partially accounting for the 20 per cent fall in underwriting profit.
Meanwhile, underwriting profit in the work injury compensation class jumped 92 per cent, while profits fell in both the fire and personal accident segments.
Looking ahead, the General Insurance Association expects personal accident and health insurance lines to grow moderately as consumers become more aware in coping with rising medical costs and growth in overseas travel.
However, motor revenue is expected to continue falling due to intense competition among current insurers and new entrants.