SINGAPORE UNDERWRITING PERFORMANCE CRITICISED

Motor claims shot up by 24% among Singaporean general insurers in the first half of 2008, leading the president of the Asian hub’s insurance association to label the results unacceptable. Figures released by the General Insurance Association of Singapore (GIA) indicated motor claims rose to $343.5m during the six-month period, compared with $276.9m during the corresponding period last year. This meant that motor business across the GIA’s 31 members showed a loss of $88.9m for the first half, compared with a loss of $41.9m during the same period in 2007. The GIA revealed insurers have been paying out 93 cents for every dollar earned from motor premiums during the first half of the year. The motor account was blamed for a significant fall in underwriting profit among the GIA’s members. Underwriting profit fell by 47% among the GIA’s membership during the six-month period, slipping to $46m from $87.5m during the corresponding period last year. Motor was not the only line of business to perform poorly. Marine hull saw its underwriting profit decline by 18.5% to $11.4m, compared with $14m during the same period in 2007, while workers’ compensation saw a half-year loss of $5.6m, compared with $5.1m during the same period last year, and health insurance profit fell by 49% to $6.6m. However, the property account delivered better news – underwriting profits increased 24% during the six-month period to $29.7m.