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Motor insurers hit by rising costs, rivalry for business keeps higher premiums in check


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Motor insurers hit by rising costs, rivalry for business keeps higher premiums in check

SINGAPORE - Rising inflation has hit the motor insurance sector but a battle for market share has helped to cushion a rise in premiums, said industry experts.

Following AXA Singapore's exit from the motor insurance business earlier this year, the fight to tap this opportunity to capture new customers has intensified.

...

The motor insurance sector, which recorded flat growth last year, saw a total underwriting loss of $15.4 million from April to June, down from $24.5 million in the first three months of this year.

Between April and June last year, the sector recorded an underwriting profit of $18.1 million.

...

Maybank Kim Eng senior economist Chua Hak Bin thinks that there are probably too many players in the motor insurance sector given Singapore's small market.

Land Transport Authority statistics showed there were 992,414 vehicles in Singapore in July, up from 991,464 in June.

"Higher manpower and motor vehicle costs will likely force a shake-up and some consolidation," Dr Chua said, adding that players might also be forced to exit when funding runs out.

https://www.straitstimes.com/business/companies-markets/motor-insurers-hit-by-rising-costs-rivalry-for-business-keeps-higher-premiums-in-check

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Following AXA Singapore's exit from the motor insurance business earlier this year, the fight to tap this opportunity to capture new customers has intensified.

I find axa tie up with car dealers offer very high premiums. Even with renewals the premiums are still very high. I think most ppl will just drop them and look for other insurers once policy expired. 

https://www.straitstimes.com/business/invest/impact-of-axa-singapores-exit-from-motor-commercial-insurance-0#:~:text=HSBC has said it will,million (S%24720 million).

HSBC is done acquiring axa sg. No wonder it stopped offering motor insurance. Dont think it is making money.

 

Budget Direct targets AXA Singapore staff and customers amid planned exit

https://www.insurancebusinessmag.com/asia/news/breaking-news/budget-direct-targets-axa-singapore-staff-and-customers-amid-planned-exit-397111.aspx

Fast hand fast leg.

 

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2 minutes ago, Watwheels said:

I find axa tie up with car dealers offer very high premiums. Even with renewals the premiums are still very high. I think most ppl will just drop them and look for other insurers once policy expired. 

https://www.straitstimes.com/business/invest/impact-of-axa-singapores-exit-from-motor-commercial-insurance-0#:~:text=HSBC has said it will,million (S%24720 million).

HSBC is done acquiring axa sg. No wonder it stopped offering motor insurance. Dont think it is making money.

Budget Direct targets AXA Singapore staff and customers amid planned exit

https://www.insurancebusinessmag.com/asia/news/breaking-news/budget-direct-targets-axa-singapore-staff-and-customers-amid-planned-exit-397111.aspx

Fast hand fast leg.

 

Motor business in Singapore is very volatile.

1 year make profit.

Next year it is loss making.

HSBC has always been a small non-motor GI player

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3 minutes ago, Mustank said:

Insurance knows who high risk who Low risk lah

they want to offer lower premium for high risk  fellows then ownself lor

Lower premium for high risk?

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ad x axa in-house one sibay ex one thing and cso also sibay blur one 

 

guess call center outsourced to south asia

 

best part price also funny one 

 

bought 1 or 2 years premium still same 

 

my friend very disappointed with so call in-house policy

 

🙊🙉🙈

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59 minutes ago, inlinesix said:

Motor business in Singapore is very volatile.

1 year make profit.

Next year it is loss making.

HSBC has always been a small non-motor GI player

Was with AXA for 3 years... find them quite ok and I am grateful to them as they provided me alternative good quote when my original AIG quote me a sky figure (>5k) after a self claim.

Lucky I moved out to another player which was much better value, so not affected by AXA pull out.

And yes I saw the inflation because my recent insurance renewal is slightly more expensive than previous year, even though car is older. but checking around, the incumbent is actually cheapest... even cheaper than the no-frills DirectAsia.

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18 minutes ago, t0y0ta said:

even cheaper than the no-frills DirectAsia.

DA and BD not really no frills cos they are smart to price as customisable 

 

but if you want a full comprehensive coverage 

 

they are more expensive 

 

my friend 2ml worth of ron92 🤫🤫🤫

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29 minutes ago, t0y0ta said:

Was with AXA for 3 years... find them quite ok and I am grateful to them as they provided me alternative good quote when my original AIG quote me a sky figure (>5k) after a self claim.

Lucky I moved out to another player which was much better value, so not affected by AXA pull out.

And yes I saw the inflation because my recent insurance renewal is slightly more expensive than previous year, even though car is older. but checking around, the incumbent is actually cheapest... even cheaper than the no-frills DirectAsia.

I have been using a broker for some years.

End up, I stick with the same insurers for years until my discount now is 55% (NCD + No demerit + Loyalty).

I have been paying almost the same premium (excl all the discounts) even when the market is going up.

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1 hour ago, inlinesix said:

I have been using a broker for some years.

End up, I stick with the same insurers for years until my discount now is 55% (NCD + No demerit + Loyalty).

I have been paying almost the same premium (excl all the discounts) even when the market is going up.

my friend asking your broker 靓女 right :inlove:

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1 hour ago, inlinesix said:

I have been using a broker for some years.

End up, I stick with the same insurers for years until my discount now is 55% (NCD + No demerit + Loyalty).

I have been paying almost the same premium (excl all the discounts) even when the market is going up.

one word of advice here...use at least 2 different brokers. compare the quotes from the 2 brokers.

Some brokers try to earn more from the insurance co that offers them the highest comms.

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24 minutes ago, Mkl22 said:

Every insurer is ok on paper until you make claims. The b**tard ones will try every means to deny you. 

But they have set of rules in the insurance contract, like under what circumstances can and cannot claim ?  So cannot really say they play punk when come to claiming, right ? 

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Just now, Hamburger said:

With drivers like taxi lao trying to go holidays, how to keep premium low .

Just saying...

Other than 3rd party liabilities, Taxi companies could be self-insured.

 

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HSBC starts to lay off AXA Singapore staff; over 20 given notice on Thursday

https://www.straitstimes.com/business/banking/hsbc-starts-to-lay-off-axa-singapore-staff-over-20-given-notice-on-thursday?utm_campaign=stfb&utm_medium=social&utm_source=facebook&fbclid=IwAR3nR82yly_a1YCfQ1L0g_CdKmP9q0KscOrR88VTJfq065REMXFCMLwUBCI

image.png.5e622073d1ded9eaf2a6c04f39b5c6b2.png

The affected employees were given three business days to consider the terms of the severance payment offered. PHOTO: AFP

Joyce Lim, Senior Business Correspondent

PUBLISHED 2 SEPT 2022, 4:10 PM SGT

SINGAPORE - More than 20 Axa Singapore employees have been told their roles have become redundant and will be terminated, The Straits Times has learnt.

The last day of their employment with HSBC, Axa Singapore's parent company, will be Nov 30, the affected staff were informed on Thursday.....

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