A nearly $110 million increase in total insurance claims paid out led Singapore’s general insurance industry to register its first underwriting loss in over a decade.
Claims paid out spiked over 12 percent last year leading to an underwriting loss of S$28 million ($19.3 million), according to data newly released by the General Insurance Association (GIA) of Singapore. This compares to an underwriting profit of $25 million in 2018.
Notable upticks in payouts came from property insurance (50 percent increase to $16.8 million), motor insurance (7.6 percent increase to $28.5 million), travel insurance (20 percent increase to $44.9 million).
Headwinds Ahead
Despite stable revenue growth including 7.6 percent growth of gross written premium in 2019 to reach $2.8 billion, headwinds lie ahead for the sector which has been seeing a steady fall in underwriting gains since 2015. Aside from an ongoing coronavirus pandemic that will undoubtedly disrupt the insurance sector, the GIA is also stepping up against insurance fraud through a newly built bureau that leveraged on last year’s prevention measures.
«The start of 2020 saw an unexpected turn of events – a new decade begins with an emergence of a new global risk,» said newly appointed GIA president Craig Ellis, referring to the coronavirus threat. «At the core of everything we do, we will ensure that general insurance protection remains accessible for everyone.»
During the GIA’s annual meeting, it also elected Christian Sandric as its vice president.
