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Singapore general insurance sector in the red with $28m underwriting loss last year on higher claims

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Be prepare to pay more premium

https://www.straitstimes.com/uncategorized/singapore-general-insurance-sector-made-28m-underwriting-loss-last-year-on-higher

Quote

SINGAPORE (THE BUSINESS TIMES) - Singapore's general insurance industry sank into the red last year with an underwriting loss of $28 million compared with an underwriting profit of $36.3 million in 2018.

The loss was largely due to a 12.2 per cent or $159 million increase in total insurance claims paid out last year, the General Insurance Association of Singapore (GIA) said in results released on Tuesday (March 24).

The five largest segments - motor, health, property, employer's liability and travel, which make up 70 per cent of the general insurance market - recorded a combined underwriting loss of $43.4 million in 2019.

Partially offsetting this loss was underwriting profit of $17.2 million from the personal accident segment.

Gross written premiums for the overall sector grew 7.6 per cent on the year to $4.1 billion as at Dec 31, 2019.

By segment, motor insurance was the largest contributor to gross written premiums, raking in some $1.12 billion last year, up 1 per cent from 2018. However, it also weighed down the sector's overall underwriting performance, by incurring a 7.6 per cent or $41.3 million increase in total claims paid out. The motor insurance segment posted an underwriting loss of $17.4 million, versus a profit of $9.2 million in the previous year.

There was a shift in vehicle ownership in Singapore in 2019, with vehicle population at its highest since 2013, fuelled mainly by a spike in private-hire cars, the GIA said.

"This meant that the sector was insuring a vehicle population with higher risk profiles as private-hire cars are driven more frequently on the road," the association noted. This was reflected in the total number of accident reports last year, which increased by 1.4 per cent from 2018.

As for health insurance, the second-largest general insurance segment in Singapore, underwriting loss narrowed to $11.2 million last year, compared with a $44.2 million loss in the year prior.

The upward trend in health insurance claims continued, with an 8.1 per cent or $22.6 million increase in payouts to policyholders requiring medical treatments last year. Gross written premiums for the segment rose about 14.3 per cent to $666.8 million, from $583.3 million a year ago.

The employers' liability insurance segment was buoyed by a sustained growth in employment for the construction sector last year, which led to an 8.9 per cent increase in gross written premiums.

The sector paid $8.29 million more in work injury compensation amid a 5 per cent rise in the number of non-fatal injuries, even though the number of workplace fatalities fell to a record low last year, the GIA said.

On Tuesday, the association appointed a new management committee at its annual general meeting. It elected Mr Craig Ellis as president and Mr Christian Sandric as vice-president.

Mr Ellis said that Singapore's general insurance sector is "determined to overcome" the unprecedented challenge of the coronavirus outbreak together, and will double its efforts to support the community, GIA members, partners and all stakeholders.

"We will ensure that general insurance protection remains accessible for everyone," he added.

Notwithstanding the Covid-19 pandemic, one of the GIA's focus areas this year is to form a new centralised investigation bureau, which will build on the association's insurance fraud-prevention initiatives.

The bureau will also drive innovative changes for the sector through the newly formed market development committee.

 

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Investigate all inflated claims and jail the buggers involved.

Do the same for the mileage cheats but that's another story.

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Posted (edited)

investigations won't happen. the other buggers take the easy way out and just up the price.

Deep seated culture of "whats the problem of collecting more"

Edited by Mkl22
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It is common practise for workshops to give red packets to car owners, who send their cars to them for repairs.

Workshops also charge significantly higher and inflated rates for accident  repair claims.

This has been going on for several decades. The authorities are sleeping on the job!

 

  

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2 hours ago, inlinesix said:

I never claim my insurance before except for the broken windscreen only. 😞

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1 hour ago, Mkl22 said:

investigations won't happen. the other buggers take the easy way out and just up the price.

Deep seated culture of "whats the problem of collecting more"

Yup this is exactly what happened to US health insurance... now sibei ex coz no one check inflated hospital bills

My mother got into car accident in her 12yo Vios a year ago. Bumper to bumper. C&C claim max amt from her insurance for knocking back both bumpers... (i think $15k? Was more than body value of the car) they even throw in some freebies like repair her instrument panel light.

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6 minutes ago, yishunite said:

Yup this is exactly what happened to US health insurance... now sibei ex coz no one check inflated hospital bills

My mother got into car accident in her 12yo Vios a year ago. Bumper to bumper. C&C claim max amt from her insurance for knocking back both bumpers... (i think $15k? Was more than body value of the car) they even throw in some freebies like repair her instrument panel light.

vios and C&C? eh?

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Sorry my car is C&C lol. I meant BM

24 minutes ago, Mkl22 said:

vios and C&C? eh?

 

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1 hour ago, yishunite said:

Sorry my car is C&C lol. I meant BM

 

I will screen shot this and report Borneo Motors to the authorities. 😁

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https://gia.org.sg/agents/media-center/company-news/487-press-release-gia-achieves-stable-growth-in-2019.html

The biggest profit contributor for GI has always been property insurance.  From u/w profit of 22.4m in 2018 to u/w loss of 4m in 2019.  It will be interesting to know what claim(s) caused such a drastic drop.

Motor Insurance

Despite increase in car population, GWP growth grew by 1%.  It shows that there is softening of premium rates in 2019.  This will be 1 contributing factor to increase in premium in 2020.

From u/w profit of 9.3m in 2018 to u/w loss of 17.4m in 2019.  That's NEGATIVE shift of 26.7m.  It will be good to segregate out u/w loss from taxi as well as phv.  Unfortunately, no one will provide this number.

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I think one of the major contributors of the loss incurred by the insurance is the ADs.

  • Just last year, my friend's BMW 216i was hit by a reversing car in car park. the headlight was slightly scratched, not cracked or malfunctioning. PML replaced the entire light assembly...damage? 3+K.
  • Back in 2009, my mazda 2 was rear ended and replaced the whole bumber, 1 wheel and 1 rear wheel axel. Mazda motor charged 12K for the repair...the OMV of the car is only 13K... where is the logic???
  • Back in 2012, my parent's nissan qashqai was head-on by a drunk driver. Tan Chong motors replaced front bumber, 1 tyre, 2 x light assembly and 1 x radiator and radiator grill.. total bill? 15K! OMV of the qashqai then was 23K.

All these repairs if done outside workshop can be at least half or lesser than what the AD charges.

But what to do? Almost any drivers with cars under warranty will choose to go back AD if insurance is paying.

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Posted (edited)
15 minutes ago, Rickster said:

I think one of the major contributors of the loss incurred by the insurance is the ADs.

  • Just last year, my friend's BMW 216i was hit by a reversing car in car park. the headlight was slightly scratched, not cracked or malfunctioning. PML replaced the entire light assembly...damage? 3+K.
  • Back in 2009, my mazda 2 was rear ended and replaced the whole bumber, 1 wheel and 1 rear wheel axel. Mazda motor charged 12K for the repair...the OMV of the car is only 13K... where is the logic???
  • Back in 2012, my parent's nissan qashqai was head-on by a drunk driver. Tan Chong motors replaced front bumber, 1 tyre, 2 x light assembly and 1 x radiator and radiator grill.. total bill? 15K! OMV of the qashqai then was 23K.

All these repairs if done outside workshop can be at least half or lesser than what the AD charges.

But what to do? Almost any drivers with cars under warranty will choose to go back AD if insurance is paying.

Your last para already explains everything right? If you're not at fault, why settle for less than the best? 

In your 2009 accident, you were not at fault. You went to Mazda rather than a third party workshop. Why?

No good preaching behaviour we won't follow ourselves.

And with regard to the high bills ADs charge, there is a reason for that. New original parts and their workmanship ain't cheap. Even if they subcontract out some panel beating and respray stuff they are still responsible for the finished product. At the end of the day, you can go back to them and keep asking them to rectify a clear defect. For most third party workshops, haha, good luck, once they've received their money, they're only interested in new business.

Just an addendum. Yes, seemingly no logic when you incur a repair cost equal or more than the OMV. 

But you can blame the sg gahmen for that. Apart from the prorated refundable stuff (coe premium), you have other taxes built into the pricing of the car, that you'll definitely lose if you scrap. 

That's why cars that would be totalled (declared total loss) almost anywhere else are often repaired and put back on the road in Sillypoor. Your Mazda would very likely have been turned into a cube in the USA. 

To me it's a safety issue, but gahmen wants its marney so what can we do? 

Edited by Turboflat4

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20 minutes ago, Turboflat4 said:

Your last para already explains everything right? If you're not at fault, why settle for less than the best? 

In your 2009 accident, you were not at fault. You went to Mazda rather than a third party workshop. Why?

No good preaching behaviour we won't follow ourselves.

And with regard to the high bills ADs charge, there is a reason for that. New original parts and their workmanship ain't cheap. Even if they subcontract out some panel beating and respray stuff they are still responsible for the finished product. At the end of the day, you can go back to them and keep asking them to rectify a clear defect. For most third party workshops, haha, good luck, once they've received their money, they're only interested in new business.

Just an addendum. Yes, seemingly no logic when you incur a repair cost equal or more than the OMV. 

But you can blame the sg gahmen for that. Apart from the prorated refundable stuff (coe premium), you have other taxes built into the pricing of the car, that you'll definitely lose if you scrap.  

That's why cars that would be totalled (declared total loss) almost anywhere else are often repaired and put back on the road in Sillypoor. Your Mazda would very likely have been turned into a cube in the USA. 

To me it's a safety issue, but gahmen wants its marney so what can we do? 

Actually for the 2009 and 2012 accidents, went back to AD mainly because of warranty issues. Had some minor fender benders after that a few years, which I went to 3rd party workshops. Why I went for 3rd party workshops is because of a much shorter turnaround time and no more warranty for the car.

But again for major damages, I'd still go back to AD, esp when its not my fault. 

My current car's AD (not mazda nor Tan Chong) is a prime example of super long turnaround time: Recently sent my car in for servicing + ask them to check a squeaking sound when engine start. Guess what? Its going to take 2 full days! I baulked and the reason they gave is 1 day is for servicing, next day is for troubleshooting and fixing, done by separate teams.

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