Singapore’s post-pandemic insurance boom: 15% growth YOY
Singapore’s general insurance sector has enjoyed a 15% year-on-year increase in gross written premiums, according to the General Insurance Association of Singapore (GIA).
The increase takes the value of its offshore and domestic premiums to US$7 billion and also comes amid a 20.3% rise in underwriting performance.
The GIA says a big driver of the boom has been the post-pandemic easing of border restrictions, which has sparked increased activity in the travel sector.
“The general insurance sector’s robust performance over the past year has reinforced our country’s position as a leading insurance hub in the region,” said Mr Ronak Shah, President of GIA.
“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.”
Health sector leads the way
Underwriting profit increased by 14.8% year-on-year to US$226 million in 2022, buoyed by strong performance in the health segment.
The GIA says this is the second consecutive year of growth recorded for the sector, underscoring its resilience as it emerges from the Covid-19 pandemic.
“This highlights the general insurance sector’s growing position in providing comprehensive protection through corporate health coverage,” GIA said.
Gross written premiums for property insurance grew by 6% to US$569 million. The GIA says this is the result of several high profile fire incidents reported by the media in the past year, reinforcing the pertinent role of property and fire insurance in rebuilding lives.
Motor insurance segment down
Thing weren’t quite as good for the motor insurance segment, which observed a 7.1% decrease in gross written premiums to US$830 million and an underwriting loss of US$16.2 million.
“Contributory factors impacting the profitability of the motor segment include rising accident rates that are trending up to pre-pandemic levels, increase in average claim bill sizes, the COE impact on new car sales, and inflationary pressures on repair costs,” said GIA in a statement provide to Asia Markets.
“Looking ahead as Singapore recovers from the pandemic, the sector remains confident in playing a pivotal role in shaping the future of the country’s insurance sector and supporting the country’s 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.”
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