Motor insurance sector sees rise in profits

[Darthrevan]

The average premium collected for motor insurance dipped slightly last year, even as the sector saw a 17.3 per cent increase in underwriting profit to $59.1 million.

At its annual results briefing on Tuesday, the General Insurance Association (GIA) said the average motor premium collected last year was $1,250, down from $1,280 in 2012. The association attributed the slight dip to more insurers entering the marketplace, and said this trend is likely to continue.

As a whole, the motor insurance sector collected $1.22 billion in gross premiums, a 2 per cent drop from 2012.

Said GIA president AK Cher: "The GIA will continue to work with our various stakeholders to ensure that motor claims are effectively managed and premiums continue to stabilise."

Source: http://www.straitstimes.com/breaking-news/singapore/story/motor-insurance-sector-sees-rise-profits-general-insurance-industry-gr

[Fcw75]

I only have this to say to them:

 

KNNBCCB!

Reduce the fricking premium then!

[GLZT]

So many inflated claims still manage to make money.

[Knoobie]

wah.. people working in mobile insurance dept huat ar!!

 

boss no give fat bonus ask him go fark spider!!

[Vid]

 

The average premium collected for motor insurance dipped slightly last year, even as the sector saw a 17.3 per cent increase in underwriting profit to $59.1 million.

At its annual results briefing on Tuesday, the General Insurance Association (GIA) said the average motor premium collected last year was $1,250, down from $1,280 in 2012. The association attributed the slight dip to more insurers entering the marketplace, and said this trend is likely to continue.

As a whole, the motor insurance sector collected $1.22 billion in gross premiums, a 2 per cent drop from 2012.

Said GIA president AK Cher: "The GIA will continue to work with our various stakeholders to ensure that motor claims are effectively managed and premiums continue to stabilise."

Source: http://www.straitstimes.com/breaking-news/singapore/story/motor-insurance-sector-sees-rise-profits-general-insurance-industry-gr

 

 

Said GIA president AK Cher: "The GIA will continue to work with our various stakeholders to ensure that motor claims are effectively managed and premiums continue to stabilise."

 

These people really learn a lot from our ministers. Can talk big with eyes wide open. Then price increase like nobody's business [:|]

 

[LiuDeHua]

I only have this to say to them:

 

KNNBCCB!

Reduce the fricking premium then!

 

$1.22 billion in gross premiums and profit $59.1 million.

 

That means the profit margin is 4.83%.

 

If insurers give you 5% discount, they will go into losses.

You think so profitable ar?

[SuPerBoRed]

 

$1.22 billion in gross premiums and profit $59.1 million.

 

That means the profit margin is 4.83%.

 

If insurers give you 5% discount, they will go into losses.

You think so profitable ar?

 

.... and the rest of the spending on office rental/purchase, salaries+bonuses.. Investments which they decide to take on etc etc

Ask these companies what their assets are...

[Ichibawa]

There is only greed in men. You shall see your premium increase again next year because shareholders expect double digit growth YOY.

[Tiger1]

Ntuc gia salaried staffs average 5 mths bonus. Dont ask me how i know. I just know.

[Kangadrool]

some "did".

 

Was quoted by one - highest of all at $1,300+, then a week later, special offer me $600+ niah. Even the direct insurers also can't match.

 

Too bad, i just signed up with Citi-AXA deal at 600+ too.

 

I believe insurers made much more money than what is "declared" 'cos it depends on how profits/loss is presented. Wonder why they always like to declare total loss? Underwriting profit probably means premiums collected minus payouts and administrative costs. Reckon it's presented this way. How about recoveries? Investment income? Did they put them in? Obviously NO.

 

I only have this to say to them:

 

KNNBCCB!

Reduce the fricking premium then!

 

Edited March 18, 2014 by Kangadrool

[Baal]

So many inflated claims still manage to make money.

Does this suggest that their KPI was based on profiteering?

 

Hence, even after inflated claims, they still profit?

[Penknife]

so im paying more than the average?

 

that sucks

[Wt_know]

if this is gross profit ... jialat ... dont think so because with meagre 4.83% gross profit ... this business died long time already

but if this is nett profit ... already factoring in millions and millions in bonuses and commissions because insurance is highly based on bonuses and commissions when quota/target achieved, then not so bad

 

4.83% = extra profit to build up reserve, expanding, renew asset, extra bonus, etc

 

 

$1.22 billion in gross premiums and profit $59.1 million.

 

That means the profit margin is 4.83%.

 

If insurers give you 5% discount, they will go into losses.

You think so profitable ar?

 

Edited March 19, 2014 by Wt_know

[inlinesix]

if this is gross profit ... jialat ... dont think so because with meagre 4.83% gross profit ... this business died long time already

but if this is nett profit ... already factoring in millions and millions in bonuses and commissions because insurance is highly based on bonuses and commissions when quota/target achieved, then not so bad

 

4.83% = extra profit to build up reserve, expanding, renew asset, extra bonus, etc

 

 

 

4.83% is after claims, acquisition cost and admin expenses. It is call underwriting profit.

[skcar]

But yearly premium keeps on increasing!

[Aaaron]

According to Business Times on 29 May, motor insurance premiums have fallen as most insurers cut prices after a profitable year in 2013, while others compete for more business. It cited among the Big 3 motor insurers, market leader NTUC Income cut its premium by 5.6 per cent to $1,846 from a year ago. This is based on the example of a 32-year-old single male driver working in the banking sector with five years' driving experience and who owns a one-year-old Toyota Corolla Altis with zero no-claims discount. NTUC Income insures about one in every five vehicles in Singapore.

AIG, which is the No 3 motor insurer in Singapore, saw a bigger drop of 19 per cent for the same profile to $2,622.

But it is AXA, the second biggest motor insurer whose premium posted the largest fall of 23 per cent to $2,033. AXA's market share is relatively close to that of AIG and together, the two companies insure roughly three out of every 10 vehicles in Singapore.

 

However, my own experience with AIG is increases rather than what is reported decrease above. Still, have not resolved with AIG on this as AIG is very arrogant and hiding behind the customer service hotline. They keep mum about the explanation in writing despite numerous calls to their customer service hotline, their followups and even online survey. Anyone have any good suggestions?