The insurance market of Singapore in 2022 has recorded a growth of 15 % combined for both offshore and domestic segments. This resulted in a rise for gross written premiums totalling SG$9.34 bn (USD $702 mn). Underwriting performance within the sector, both overseas and at home, also grew by 20.3%.
According to the General Insurance Association, the insurance segment recorded a growth of 9.6% in gross written premiums for a total of $4.84 bn.
Underwriting profit at home also enjoyed its second consecutive year of growth with 14.8% to SG$301.6 mn.
Health insurance recorded the best growth with a 19% increase in gross written premiums. Total underwriting profit for the segment also recorded an increase of SG$69.6 mn, an uptick from the underwriting loss experienced in 2021.
Property insurance within the sector also grew by 6% to the tune of SG$758.3 mn. The motor insurance segment fell by 7.1% to SG$1.1 bn, in addition to recording an underwriting loss of SG$21.6 mn.
GIA attributes this to rising accident rates that trended up to pre-pandemic levels, increase in average claim bill sizes, the impact of certificate of entitlement on new car sales, and inflation affecting repair costs.
Despite the loss, the motor segment is still the biggest slice of the general insurance pie, with a market share of 22.2%. This is followed by health at 18.4%, property at 15.7%, employer’s liability at 8.7%, and travel at 4.4%.
GIA president Ronak Shah said that the general insurance sector’s performance has reinforced Singapore as the leading insurance hub within the region.
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.
Established in 1966, the General Insurance Association of Singapore constantly works to make all aspects of general insurance easier and more effective for consumers, agents and insurers based in Singapore.
As a Trade Association, we are actively involved in the business community representing the interests of our member companies. We assist in identifying emerging trends and responds to issues affecting the General Insurance industry. We seek to promote the overall growth and development of the Singapore General Insurance sector.
Singapore will form a world-first commercial cyber risk pool, as it works towards strengthening the region’s resilience against growing cyber threats.
The cyber risk pool reflects Singapore’s standing as a specialty insurance hub, and our commitment to driving forward-looking insurance solutions to tackle new and emerging risks.
According to Finance Minister Heng Swee Keat, the pool will commit up to US$1 billion in capacity, and bring together both traditional insurance and the insurance-linked securities markets to provide bespoke cyber coverage.
Asia is one of the hotspots of malicious cyber activities, with hackers being 80% more likely to target Asian organisations, the Singapore Business Review reported. This is because Asia’s cyber defences and responses are weak, with corporations 1.7 times slower to detect cyber breaches and over 60% of companies having no monitoring system against cyber threats.
by Yana Keller