KUALA LUMPUR, Nov 23 – Malaysia’s general insurance industry has recorded a 7.3 per cent increase in gross direct premiums to RM10.5 billion for the first half (1H) 2023 compared to the same period last year, said the General Insurance Association Malaysia. (Piam) K.
In a statement, the association said that despite the positive trajectory, there was a 37.8 per cent contraction in underwriting profits, which stabilized at RM500 million.
“This decline is largely due to the decline in profitability of the motor and fire lines of the business. “Notably, motor portfolio losses decreased by RM200 million compared to the same period last year, due to a decline in motor claims experience closer to pre-pandemic levels and rising prices of vehicle spare parts in Malaysia,” it said.
On the other hand, Piam said various flood events and rising reinsurance costs have adversely impacted the overall profitability of the fire portfolio.
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“Motor retained its position as the largest line of business with 44 per cent share in total premium,” it said.
However, Piam said that despite a commendable eight per cent growth in gross direct premiums, reaching RM4.6 billion in 1H 2023, motor insurance recorded underwriting losses of RM54 million, with the net claims ratio worsening to 67.1 per cent. Went, who came back towards the east. -Epidemic level.
Meanwhile, it said that following the increasing flood events, the rate of flood optional coverage within the motor and fire policy portfolio has increased by two per cent to 14 per cent and 33 per cent respectively.
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Regarding claims, Piam said the general insurance industry’s daily claims payout is close to RM23 million.
“Average daily claim payouts in first half 2023 have increased by 23 per cent from full year 2022.
“For 1H 2023, motor daily claims payouts increased to approximately RM16 million per day, which is also the highest compared to the pre-pandemic period,” it said. -Bernama
(TagstoTranslate)Insurance Industry(T)General Insurance Association of Malaysia PIAM(T)Malaysia
