BUSINESS RESULTS

Key Figures of the General Insurance Industry, 2009/2010

1. Association Membership

   
   As at 1^st April 2010, the Association had 36 members comprising licensed general insurance and reinsurance companies operating in Malaysia. There were 21 general insurers, 9 composite insurers and 6 general reinsurers. Out of the 36 member companies, 21 were domestic operations whilst 15 were foreign owned.

2. General Insurance Business Market Share

   

   The general insurance industry recorded gross written premium growth of 5.83% in 2009 to reach RM11.983 billion compared with an increase of 8.37% in 2008 at RM11.323 billion. Net premiums grew at 4.86% in 2009 to reach RM8.385 billion compared to 10.5% in 2008. Gross direct premium increased by 5.7% to reach RM11.519 billion compared to RM10.895 billion in 2008.

   The Motor class recorded a gross written premium of RM5,288.1 million which was an increase of 7.6% over the previous year (2008: 10%, RM4,911.6 million). The fire class of business registered a 5.3% increase in gross written premium to RM2,237.2 million (2008: 6%, RM2,123.7 million).

   In terms of market share of Gross Direct Premiums, the Motor sector dominated the market with 45.6% which was an increase of 2.2% from the previous year. The Fire sector's share was reduced from 18.8% in 2008 to 17.6% in 2009. All the other sectors experienced a reduction in market share except for Medical which increased from 4.9% in 2008 to 5.1% in 2009 and Personal Accident which increased from 7.6% in 2008 to 8.2% in 2009.

3. Net Claims Incurred Ratios (NCIR) By Sectors

   

   The total Net Claims Incurred Ratio (NCIR) for 2009 improved from 65.5% in 2008 to 61.5% in 2009. The combined ratio also decreased in 2009 to 92.6% compared to 97.9% in 2008.

   The Motor loss ratio eased to 80.0% compared to 82.7% in 2008. The loss ratio for Motor Act cover, however, escalated to 259.3% from 255.4% in 2008. Most of the insurance classes experienced a reduction in net claims incurred ratios except for the Liability and Bonds class which increased from 13.5% in 2008 to 33.3% in 2009 and; 2.3% in 2008 to 7.6% in 2009 respectively.

4. Underwriting Margin

   

   The insurance industry recorded an underwriting margin of RM612.7 million compared to RM163 million in 2008. The management expenses and commissions decreased from 32.3% in 2008 to 31.0% in 2009.

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