BUSINESS RESULTS

Key Figures of the General Insurance Industry, 2008/2009

1. Association Membership

   
   As at 1^st April 2009, 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. Out of the 39 members, 24 companies were domestic operations whilst 15 were foreign owned.

2. General Insurance Business Market Share

   

   The general insurance industry recorded gross written premium growth of 8.37% in 2008 to reach RM11.323 billion (2007: 3.57%, RM10.448 billion). Net premiums grew at a rate of 10.15% to RM7.996 billion. Gross direct premium increased by 8.49% to RM10.896 billion compared to RM10.043 billion in 2007.

   The Motor class recorded a gross written premium of RM4,911.6 million which was an increase of 10% over the previous year (2007: 1.9%, RM4,460 million). The fire class of business registered a 6% increase in gross written premium (2007:1.3%).

   In terms of market share of gross direct premiums, the motor sector dominated the market with 43.4% (2007: 42.6%). The fire and MAT & offshore related sectors recorded slight reductions in their respective shares at 18.8% and 11.0% in 2008. The personal accident (PA), MHI, contractors-allrisks & engineering, liabilities and WC & EL had 7.6%, 4.9%, 4.0%, 3.4% and 1.3% market shares respectively.

3. Net Claims Incurred Ratios (NCIR) By Sectors

   

   The NCIR for all sectors decreased slightly from 66.6% in 2007 to 65.5% in 2008. The combined ratio also decreased in 2008 to 97.9% compared to 100.2% in 2007.

   The motor sector experienced a higher claims ratio of 82.7% in 2008 (2007: 80.3%). There was further deterioration in the motor "Act" claims ratio to 255.4% from 242.7% the previous year. Increases in the claims ratios were evident in WC & EL, marine hull, aviation and personal accident sectors. Other classes recorded reductions in claims ratios.

4. Underwriting Margin

   

   The insurance industry recorded an underwriting margin of RM160 million in 2008 compared to a negative margin of RM123 million in 2007. The management expenses and commission ratios have remained fairly constant.

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