Insurers signalling huge hike

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http://www.channelnewsasia.com/stories/sin.../313374/1/.html

 

Singapore motor insurers report 300% rise in Q3 losses

 

 

By Loh Kim Chin, Channel NewsAsia | Posted: 23 November 2007 2251 hrs

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SINGAPORE : Losses in motor insurance are hurting profits in the general insurance market.

 

According to the General Insurance Association of Singapore, or GIA, gross insurance premiums rose 3.7 percent in the third quarter of this year to S$572 million compared to the same period a year ago.

 

But the motor account - the largest single class of general insurance business in Singapore - continued to see losses.

 

The loss came in at S$40 million - the largest ever quarterly loss for motor insurers in Singapore.

 

The GIA attributed the losses to rising claims, high acquisition costs and underpricing due to fierce competition.

 

It warns that for the whole year, the loss on the motor account would top the S$100 million mark. - CNA/ch