THE general insurance sector recorded a 15 per cent increase in gross written premiums to S$9.3 billion across both the offshore and domestic segments, with underwriting performance rising 20.3 per cent.

The domestic segment notably recorded its second consecutive year of growth, with gross written premiums rising 9.6 per cent to S$4.8 billion on the back of strong uptake across all segments in the domestic market.

This resulted in underwriting profit of S$301.6 million for 2022, up 14.8 per cent on the year, from S$262.7 million in 2021.

Across the various business segments, health insurance was the strongest contributor in terms of growth with a 19 per cent increase in gross written premiums.

Total underwriting profit for the health segment also posted the strongest underwriting performance among its sector peers with a profit of S$64.5 million, reversing the underwriting loss experienced in 2021.

The General Insurance Association (GIA) on Wednesday (Mar 22) said this is reflective of the general insurance sector’s growing position in providing comprehensive protection through corporate health coverage.

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“Health continues to be top of mind for corporations on the back of rising healthcare costs and as the world emerges from the Covid-19 pandemic, further affirming the sector’s increasing role in protecting consumers in the corporate health segment,” it stated.

Gross written premiums for property insurance grew by 6 per cent to S$758.3 million, while underwriting profit grew 19.2 per cent to S$50 million.

GIA attributes 2022’s property segment performance to multiple high profile fire incidents reported by the media in the past year. In the association’s view, such reports have reinforced the “pertinent role of property and fire insurance in rebuilding lives”.

Gross written premiums for motor insurance, however, fell by 7.1 per cent year on year to S$1.1 billion, while underwriting performance fell into the red with a loss of S$21.6 million as opposed to underwriting profit of S$49.7 million in 2021.

Factors contributing to the segment’s decline in performance include rising accident rates, higher average claim bill sizes, the impact of COE (certificate of entitlement) on new car sales, as well as inflationary pressures on repair costs, said GIA.

The association also intends to launch a video campaign aimed at raising public awareness of “motor touts”, or the fraudulent activity of inflated claims in the motor segment, in the second half of 2023.

Employers’ liability insurance experienced a 5.3 per cent increase in gross written premiums to S$420.5 million, in line with higher foreign workforce numbers in 2022.

Gross written premiums for the travel insurance sector reported a multifold year-on-year increase to S$214.5 million from S$48.4 million in 2021, amid the reopening of borders around the world.

Within the offshore market, total gross written premiums for 2022 were higher at S$4.5 billion as opposed to S$3.7 billion the previous year. Underwriting performance improved as well to S$382.2 million, from S$305.5 million in 2021.

The property sector came in top in terms of both gross written premiums and underwriting performance at S$2.6 billion and S$237.3 million, respectively. This segment also had the largest offshore market share of 56.8 per cent.

“The general insurance sector’s robust performance over the past year has reinforced our country’s position as a leading insurance hub in the region,” said Ronak Shah, president of GIA.

“As we look ahead into 2023, we remain optimistic in our sector’s ability to navigate and excel in a rapidly evolving landscape.”