The insurance industrys performance
was mixed in 2003, with an improvement in general insurance
but a drop in new life insurance business. While general insurance
premiums increased, life insurance premiums continued to decline
(See Chart 16).
General insurance premiums rose to
S$5 billion, a 5% increase, with domestic business written making
up S$2.3 billion of the total. Premiums from domestic business
written grew 5.1%. Premiums from the motor and health categories
also saw continued growth, growing 9.6% and 12% respectively.
The increase in motor premiums to S$698.4 million can be partly
attributed to higher premium rates. Health insurance premiums
amounted to S$240 million.
In contrast, the life insurance sector was affected by both
the economic slowdown and SARS in March 2003. Premiums from
single premium life insurance declined 22.4% to S$4.6 billion
due in part to a non-recurring surge in such business in 2001
and 2002. The sector experienced a strong recovery in investment-linked
business in the second half of 2003.
Enhancing Risk-focused Supervisory Approach
Box 1 Fostering a Sound and Progressive
Financial Services Sector