Insurance Industry In Singapore

General Insurance Industry In Singapore

Singapore’s general insurance industry is seeing good growth with a steady increase in both gross premiums and underwriting profits during the first nine months of the year 2005.

Figures released by the General Insurance Association show a 10 percent jump in underwriting profits for local general insurers to S$166 million during that period.

Total gross premiums climbed by 2.2 percent to S$1.71 billion. The association has reported that all major classes of business performed very well.

Motor insurance continued to be the largest class of business underwritten by local general insurers, taking up a 31 percent share of the market. Underwriting profits for motor insurance jumped nearly four-fold to S$36 million during the first nine months of the year.

Though there was a greater concern when six members of the GIA pulled out of the Independent Damage Assessment Centre scheme over the last month still the association says it will not have any significant impact on the market.

Said Derek Teo, president, General Insurance Association of Singapore, “The percentage of the business by the members who have pulled out is not that significant. Moreover the members who have pulled out have developed their own business models over a period of time and they have found that the IDAC services no longer serve their needs.”
The fire and personal accident insurance also registered good growth during that period. Premiums for personal accident showed the highest jump that is 13 percent as more Singaporeans bought travel insurance cover.

General Insurance Association Of Singapore

General Insurance Association Of Singapore (GIA) is the industry representative body of all 34 non-life Insurance companies making business in Singapore. Over the past years GIA has focused on wide ranging industry reforms for making world-class insurance hub. The new initiatives include Motor Insurance Task Force and the committee for Enhancement of Standards in General Insurance (CESGI). For raising public confidence for General Insurance Industry the GIA also represents its members interests to Government, trade bodies and associations to other industries.

Members of GIA
The association comprises both the ordinary members as well as associate members.

Ordinary members are insurers who have been registered under the provisions of the insurance act in Singapore with objective of transacting direct insurance business in Singapore and memberships are subject to approval of managing committee.

Associate members are companies other than those entitled to apply for ordinary membership of the association subject to the approval of the management Committee.