BUSINESS RESULTS

Key Figures of the General Insurance Industry, 2007/2008

1. Association Membership

   
   As at 1st April 2008, there were 39 member companies of PIAM comprising licensed general insurance companies operating in Malaysia made up of 23 general insurers, 10 composite insurers and 6 general reinsurers. During the period under review, a new general reinsurer, Asia Capital Reinsurance Malaysia Sdn Bhd, became a member of PIAM with effect from 16th March 2007. Tokio Marine Insurans (Malaysia) Bhd acquired Asia Insurance (Malaysia) Bhd with effect from 21st January 2008.

2. General Insurance Business Market Share

   

   The general insurance industry recorded gross written premium growth of 3.91% in 2007 to reach RM11.488 billion. Net premiums grew at a rate of 5.26% to RM8.197 billion. Gross direct premium increased by 4.23% to RM10.043 billion compared to RM9.635 billion in 2006.

   A significant increase in gross written premiums of 14.06% was noted in the Medical class to reach RM485 million (2006: RM417 million). The Motor class recorded a gross written premium of RM4,679 million which was an increase of 1.43% over the previous year (2006: -0.44%, RM4,612 million). The fire class of business registered a 3.69% increase in gross written premium (2006: 1.75%).

   In terms of market share of gross direct premiums, the motor sector dominated the market with 44.3% (2006: 41.7%). The fire and MAT sectors recorded slight reductions in their respective shares at 17.8% and 11.8% in 2007. The personal accident (PA), MHI, contractors-all-risks & engineering, liabilities and bonds had 7.4%, 4.6%, 3.8%, 2.9% and 0.4% market shares respectively.

3. Net Claims Incurred Ratios (NCIR) By Sectors

   

   The NCIR for all sectors increased from 60.6% in 2006 to 65.7% in 2007. The combined ratio increased in 2007 to 99.1% compared to 93.3% in 2006.

   The motor sector experienced a higher claims ratio of 80.2% in 2007 (2006: 72.1%). There was further deterioration in the Motor “Act” claims ratio to 244.3% from 204.1% the previous year. Significant increases in the claims ratios were evident in the CAR & engineering, MHI and MAT sectors. Other classes recorded reductions in claims ratios.

4. Underwriting Margin

   

   The insurance industry recorded a poor underwriting margin of 0.9% compared to 6.2% in 2006 mainly due to net claims ratio increasing to 65.7% in 2007 compared to 60.6% in 2006. The management expenses and commission ratios have remained fairly constant.

Table of Contents | Next Page >>