OVERVIEW

In 2005, the general insurance industry continued to register growth in gross direct premium (GDP) which recorded an increase of 9.9% to reach RM9.38 billion (2004: RM8.53 billion).

The Motor sector continued to dominate market share with 47.1% (2004: 45.2%) followed by the Fire sector at 18.1% which was a slight decrease from 19.5% in 2004. The Marine Aviation and Transit (MAT) sector recorded a gross direct premium income of RM1.01 billion in 2005 compared to RM0.85 billion in 2004. The MAT market share was 10.8% in 2005 (2004: 10%).

The Personal Accident and Workmen’s Compensation & Employers Liability sectors maintained their market shares of 6.5% and 1.3% respectively. However, there were reductions in the market shares of Contractors All Risks & Engineering (2005: 4.2%; 2004: 4.8%), Liabilities (2005: 2.9%; 2004: 3.2%), and Medical Expenses (2005: 3.8%; 2004: 4%).

The overall net claims incurred ratio (NCIR) for 2005 was a creditable 55.4% which was a reduction of 5.5% compared to the previous year (2004 : 60.9%).

The total assets held by general insurance companies at the end of 2005 was RM17.9 billion (2004: RM17.0 billion). These assets were mainly held in investments in Malaysian Government papers and guaranteed loans as well as corporate debt securities whilst a comfortable level of liquidity was maintained in cash and deposits which totaled almost RM5.56 billion.

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