2016 general insurance premiums rise to S$3.7b in Singapore

Singapore's general insurance industry recorded a 0.6% rise in total gross premiums to S$3.7 billion in 2016. According to the General Insurance Association (GIA), margins fell amid domestic and external headwinds resulting in a slight drop in underwriting profit from about S$310 million in 2015 to S$257.6 million last year. The motor insurance class, which accounts for 32% of the general market, saw its premiums remain mostly stable last year, with the average motor premium standing at S$1,202. This is due to more choices for motorists as the past year saw several new market entrants. Overall, the motor insurance industry continued to remain profitable, with an underwriting profit of S$87.4 million. GIA said it is predicting that motor premiums will remain flat due to keen competition among existing insurers and from newcomers. Meanwhile, the health insurance class recorded the biggest growth across the board in 2016, with a 16% year-on-year increase in gross premiums to S$503.5 million. This is likely due to growing interest in the population to ensure adequate health coverage, according to GIA.