KUALA LUMPUR: The general insurance industry received RM8.33 billion gross premiums for the first six month this year, up 5.7 per cent from RM7.8 billion in the same period in 2012.
In a statement yesterday, General Insurance Association of Malaysia (PIAM) chairman Chua Seck Guan said motor insurance remains the largest contributor of gross premiums.
“The general insurance industry continued to remain resilient in the first half of 2013. We expect the industry to continue growing steadily based on increasing affluence among middle-income earners, fairly strong domestic consumption, innovative products and services introduced by insurers and new methods of engaging with consumers by leveraging on the technological advancements," he said in a statement.
Chua said in terms of market share for the general insurance industry, motor insurance accounted for the largest slice of the pie with 44.4 per cent, while fire recorded 17.6 per cent share, and marine, aviation and transit registered 10.8 per cent.
Personal accident's market share was at 7.4 per cent, medical and health insurance at 6.7 per cent, followed by liabilities (3.5 per cent), workmen’s compensation and employer’s liability (1.5 per cent), while other classes of general insurance contributed 4.8 per cent.
According to a report by the Insurance Services Malaysia Bhd, the Net Claims Incurred Ratio for the general insurance industry registered a slight improvement to record claims at 58.2 per cent compared with 58.8 per cent over the same period in 2012.
However, the overall combined ratio had a slight increase from 88.1 per cent in 2012 to 88.8 per cent in 2013, while the overall operating ratio increased from 79.7 per cent to 80 per cent in 2013.
Total assets of the general insurance industry for the first half of 2013 stood at RM26.83 billion compared with RM23.45 billion in previous corresponding period.
Chua urged industry players to continue their efforts in modelling risks for growing economies, diversifying its distribution channels and developing new products to further penetrate the growing consumer market.
He said the insurance industry plays a robust role in Malaysia’s financial system, offering a wide spectrum of general and life insurance products, and PIAM remains committed to helping the nation protect itself from the financial impact of natural disasters and man-made risk through its members.
Consumers are becoming more aware of the advantages of insurance, especially when it provides coverage or protection for loss or damage to their properties, he said.