KUALA LUMPUR: Motor continued to drive the local general insurance sector, which recorded a 1.5% growth, underpinned by the jump in car sales during the tax-free period from June to August.
The General Insurance Association of Malaysia (PIAM) said on Friday the industry recorded gross written premiums of RM17.92bil on the back of higher premiums from its two largest classes of insurance, motor and fire.
“Motor remained the largest class with a market share of 47.3% followed by fire at 19.6% and marine aviation & transit at 7.4%,” it said.
Motor insurance rose 1.8% with gross written premiums of RM8.47bil, due to increases in new vehicle sales in both the private motor cars and commercial vehicles segments.
Nearly 600,000 new vehicles were sold in 2018 compared to 580,000 in 2017 as a result of increased demand during the tax free months from June to August 2018.
Fire insurance grew 2.8% and maintained its position as the second largest class with gross written premiums of RM 3.51bil.
However, marine aviation & transit insurance recorded a 0.3% decline with gross written premiums of RM1.33bil owing to reductions in the cargo and offshore oil related classes.
According to PIAM's data, medical and health insurance (MHI) grew by 5.2% to RM1.16bil while personal accident insurance rose by 6.9% to RM1.21bil.
The miscellaneous class recorded a dip of 4.8% with gross written premiums at RM2.24bil.
Within this class bonds, liabilities, engineering and workmen’s compensation insurances declined year on year. Uncertainty over some mega construction projects which are currently under review contributed to the slowdown.
Malaysia has one of the highest road accident numbers in the world. Total Motor insurance claims incurred by the industry rose to RM 5.45 billion in 2018.
PIAM said it is committed to work with the government and all agencies to reduce road accidents nationwide.
It said the industry was working closely with the Road Transport Department and Road Safety Department at the Transport Ministry.
“PIAM is working with the ministry to enable insurers to have access to traffic summons data which can then be used in the calculation of insurance premiums. In this way bad risks will be recognised while good drivers with summons free record will be incentivised,” it said.