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Only 3 out of 25 motor insurers post profit : MAS

Crashing dollar

Only 3 out of 25 motor insurers post profit : MAS

– extract from Business Time

JUST three of the 25 insurers involved in the motor business here made an underwriting profit last year, the Monetary Authority of Singapore said yesterday.

As a result, MAS is urging motor insurers to tighten underwriting standards to stem losses. It has also acknowledged the problem of inflated claims, and asks motorists to cooperate in keeping premiums down.

‘We noted instances of insurers merely matching or giving fixed discounts off the premium quotations of their competitors without giving due regard to their own underwriting standards,’ MAS executive director (insurance supervision) Low Kwok Mun said at the annual general meeting luncheon of the General Insurance Association (GIA).

Last week, GIA reported a record motor underwriting loss of $214 million for 2008 – more than twice that of 2007. This was despite a 21 per cent increase in premiums collected to $906 million…..

 

The fact of the matter is that as long as workshops continue to try to cheat the system, premium will go up.

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