Insurance underwriting profits up 4.4%

Singapore's general insurance industry recorded a gross premium income of S$3.03 billion in 2010, up 3.7 per cent from the previous year. This was announced by the General Insurance Association of Singapore.

The industry also made a 4.4 per cent or S$198.1 million profit from underwriting, compared with S$189.7 million in 2009.

Its total incurred loss ratio was 57.6 per cent down from 58.4 per cent.

Flash floods in2010 caused an underwriting loss of S$48.9 million within motor vehicle insurance, compared with S$44.5 million in 2009. Because of this, motor vehicle insurance premiums are expected to rise in the coming year.

Overall, motor insurance accounted for 38.8 per cent of the general insurance pie, up from 36.8 per cent in 2009.

Health insurance made the biggest loss in underwriting profits, dropping 56 per cent to S$4.6 million. In 2009, underwriting profits totaled S$10.4 million.

Work injury compensation made the biggest leap in underwriting profits, which totaled S$5 million in 2010. This is a 141 per cent increase from the S$12.3 million loss in 2009.