Singapore’s general insurance sector experienced a robust 10.1% growth in gross written premiums, reaching S$10.2 billion in 2023. This growth was driven by both domestic and offshore markets, although the sector’s underwriting profit decreased to S$608.1 million for the year.

The General Insurance Association of Singapore (GIA) reported on March 18 that domestic gross written premiums rose by 7.3% to S$5.2 billion. However, underwriting profit for this segment fell by 11.2% to S$262.9 million, primarily due to a significant 44% increase in net incurred claims.

Motor insurance accounted for the largest market share, representing 21% of the total premiums. This segment saw the most dramatic increase in claims, soaring by 73.3% to S$573.4 million, as traffic accidents rose significantly. The number of accident reports climbed to 149,451 in 2023, up from 139,019 in 2022 and 123,485 in 2021.

Despite the rise in claims, the motor segment’s gross written premiums remained stable at S$1.1 billion, and underwriting losses improved to S$7.7 million from S$21.6 million in the previous year. Ronak Shah, GIA president, emphasized that the focus will be on protecting and supporting the motoring public in the coming year.

In contrast, health insurance, which previously showed strong performance, reported an underwriting loss of S$10.6 million in 2023 due to a 10.3% increase in claims, highlighting the growing costs associated with healthcare. The corporate health insurance sector did see a 12.1% increase in gross written premiums, underscoring its importance.

The property segment’s gross written premiums saw modest growth of 2.2% to S$774.9 million, but underwriting profit declined by 9.5% to S$45.5 million as net incurred claims rose by 38%.

The employers’ liability insurance segment experienced a 10.2% growth in premiums, totaling S$463.2 million, and saw its underwriting profit increase significantly to S$45.7 million due to a decline in workplace fatalities.

The travel insurance sector emerged as a notable performer, with gross written premiums surging 37.6% to S$295.1 million and achieving an underwriting profit of S$30.6 million, reflecting the recovery of travel and increased awareness among consumers.

In the offshore market, gross written premiums grew 13.3% to S$5 billion, although underwriting profit dipped slightly to S$345.2 million from the previous year.

Overall, while the general insurance sector showed promising growth in 2023, challenges remain, particularly regarding claims management and economic uncertainties.