Performance and Growth


Good Performance for Insurance
The life insurance industry experienced steady growth in 2004, in tandem with the strong recovery of the Singapore economy and a more favourable investment climate (See Chart 13). Premiums grew by 17.3% from S$10.4 billion in 2003 to S$12.2 billion in 2004.

Gross premiums for the domestic general insurance business fell by 4.3%, from S$2.3 billion in 2003 to S$2.2 billion in 2004. This was largely due to insurers transferring their accident and health (A&H) business to their life insurance funds. This is in response to regulatory changes pertaining to the classification of long term and short term A&H business.

After recording losses for the past few years, the motor insurance sector returned to profitability with an underwriting profit of S$10.8 million, mainly due to efforts by the industry to improve pricing practices and control claims cost.