| |
BUSINESS
RESULTS
Key Figures of the General Insurance Industry, 2006/2007
- The Number of General Insurance Companies
 
As at 1st April 2007, there were 39 licensed general insurance companies
operating in Malaysia which comprised 25 general insurers, 9 composite
insurers and 5 general reinsurers. During the period under review,
Employers Reinsurance Corporation ceased to be a member company
from 4th April, 2006. Aviva Insurance Bhd merged with Mitsui Sumitomo
Insurance (M) Bhd with effect from 1st July, 2006.
- General Insurance Business Market Share
 
The general insurance industry recorded gross written premium growth
of 3.23% in 2006 to reach RM11.034 billion. Net premiums grew at
a rate of 2.9% to RM7.769 billion. Gross direct premium increased
by 2.66% to RM9.636 billion compared to RM9.386 billion in 2005.
The medical and health insurance (MHI)class performed well to register
gross written premium growth of 12.24% to RM417 million compared
to RM372 million in 2005. However, motor insurance gross written
premium growth decreased by 0.46% to register RM4,610.9 million
in contrast to the 11.9% growth registered in 2005. The fire class
of business registered 1.73% increase in gross written premium to
RM 2,327.3 million.
In terms of market share of gross direct premiums, the motor sector
dominated the market with 41.9% (2005: 43.4%). The fire sector recorded
a slight reduction in market share in 2006 to 21.1% (2005:21.5%).
Marine, aviation and transit (MAT), personal accident (PA), contractorsall-risks
& engineering and MHI had 12%, 6.8%, 4.9% and 3.8% of market shares
respectively.
- Net Claims Incurred Ratios (NCIR) By Sectors
The NCIR for all sectors increased from 55.4% in 2005 to 59.4%
in 2006. The combined ratio increased in 2006 to 92.02% compared
to 87.2% in 2005.
The motor sector experienced the highest claims ratio of 71.1%
in 2006 (2005:66.9%). There was deterioration in the Motor “Act”
claims ratio to 196.1% from 166.3% the previous year. Significant
increases in the claims ratios were evident in the CAR & engineering,
liabilities and workmen's compensation and employers' liability
classes
- Underwriting Margin
 
With net claims increasing from 55.4% in 2005 to 59.4% in 2006,
the underwriting margin for 2006 thinned from 12.9% to 8.0%. The
management expenses and commission ratios have remained fairly constant
for quite some time.
- The Number of Agencies
The total number of general insurance agency units registered in
2006 was 40,869 (2005 : 48,088). This number represents a decrease
in the number of agency units by 15%. This is largely due to teminations
of agents who have not met the Minimum Maintenance Contract requirement
of RM20,000 gross premiums per agency during either the first or
second year of the two-year period of registration. More than half
(i.e. 22,419 or 55%) of all registered agents transact business
with only one Principal.
The distribution of agents in the respective states in Malaysia,
Singapore and Brunei are shown in the table below:-
| States in Malaysia |
No. of Agents |
| 2005 |
2006 |
| Johore |
6,421 |
5,617 |
| Kedah |
2,215 |
1,903 |
| Kelantan |
1,090 |
798 |
| Melaka |
1,954 |
1,606 |
| N.Sembilan |
1,841 |
1,527 |
| Pahang |
2,091 |
1,725 |
| Penang |
4,732 |
3,990 |
| Perak |
4,198 |
3,415 |
| Perlis |
181 |
142 |
| Sabah |
2,830 |
2,171 |
| Sarawak |
3,742 |
2,917 |
| Selangor |
8,487 |
7,674 |
| Terengganu |
748 |
689 |
| WP Kuala Lumpur |
7,468 |
6,614 |
| WP Labuan |
6 |
16 |
| Others (Outside Malaysia) |
|
| Brunei |
2 |
0 |
| Singapore |
82 |
65 |
Table
of Contents | Next Page >>
|
