In its 6 month update on the general insurance performance, PIAM said the industry has registered an increase in gross direct premiums of 10.3% to RM 9.8 billion for the first six months of 2022 compared to the same period last year. However, it also stated that the underwriting profit had contracted by 21.2% to RM 810 million, largely due to losses in the Motor and Medical and Health Insurance lines of business.
As for Motor and Fire, the sector remained dominant and PA benefited from PTV programme In relation to premium, Motor remained the largest line of business at 43% share, followed by Fire (29%) and Miscellaneous (14%). PA premium saw a significant growth of +44% year on year largely due to the Perlindungan Tenang Voucher programme launched in conjunction with the Ministry of Finance.
Meanwhile, the premium for Fire in 1H2022 increased by 5% to RM 2 billion as compared to 1H2021, with its underwriting profit improving by 23% YoY. The 1H2022 premium for Marine Aviation and Transit (MAT) insurance had also notched up 7% to RM 900 million, while Medical and Health Insurance had contracted 6% to RM 550 million compared to 1H2021.
According to PIAM the industry pays out RM15.2 million in claims daily whereas the Motor daily claims payout represented a significant majority of the total at RM12 million per day.
Owing to raised consumer awareness of the risks of damage to property and assets from flash floods in recent memory, the Motor (Comprehensive) flood take-up rate more than doubled in 1H2022 to 12% compared to the take-up rate of 5% for full year 2021. On the other hand, the Fire (Material Damage) flood take-up rate also increased slightly to 31% in 1H2022 as compared to full year 2021 at 30%.
Average Premium reduced on Motor Third Party Fire & Theft (“TPFT”) and significantly so for Motor Third Party (“TP”) in the past 5 years, i.e. -0.1% effective rate per annum and – 4.0% effective rate per annum respectively. The average premium for TP peaked in 2014, and had seen a decreasing trend since then.
PIAM added that the industry welcomes the second stage of Phased Liberalisation of Motor and Fire Tariffs as announced by BNM.
