Industry Updates

General Insurance Market Performance in 2009

In 2009, gross and net premiums for general insurance business recorded a growth of 5.7% to $28.6 billion and 7.1% to $20.5 billion respectively compared with 2008. Overall underwriting performance also registered improvement from a profit of $1.5 billion to that of $2.2 billion for 2009.

On direct business, gross and net premiums gained 5.3% to $22.7 billion and 6.3% to $17 billion respectively in 2009. Accident & Health business (comprising Medical business) continued to grow with gross and net premiums reaching $7.4 billion and $6.2 billion respectively. Construction-related Employees' Compensation business also boosted with gross and net premiums increased to $1.8 billion and $1.5 billion respectively. The overall business growth was nonetheless offset by the decline in Ships business and Goods in Transit business. The former recorded a fall in gross and net premiums to $963 million and $624 million respectively and for the latter the gross and net premiums contracted to $849 million and $538 million respectively.

The underwriting profit of direct business grew from $519 million to $1.4 billion in 2009 as a result of favourable claims experience. Specifically, Property Damage business reported a profit of $505 million as compared with $127 million for 2008 when severe losses were inflicted by tropical storms; whilst the underwriting loss for Employees?? Compensation business significantly reduced from $498 million to $82 million. There was also a material decline in the underwriting loss for Motor Vehicle business primarily due to improvement in claims experience, which was partly attributable to the exclusion of the claims incurred figures of a local insurer placed in provisional liquidation since May 2009 from the statistical data.

(Source: The Office of the Commissioner of Insurance)