KUALA LUMPUR (Nov 4): The general insurance industry registered an increase in gross direct premium of 10.3% to RM9.8 billion for the first half of 2022 (1H22) compared with the same period last year, according to the General Insurance Association of Malaysia (PIAM).
In a statement, PIAM said motor insurance remained as the largest line of business at 43% share, followed by fire insurance (29%) and miscellaneous (14%).
PIAM said the premium for personal accidents saw a significant growth of 44% year-on-year, largely due to the Perlindungan Tenang voucher programme launched in conjunction with the Ministry of Finance.
The premium for fire insurance in 1H22 increased by 5% to RM2 billion, with its underwriting profit improving by 23%.
The premium for marine aviation and transit insurance also notched up 7% to RM900 million in 1H22, while medical and health insurance contracted 6% to RM550 million.
PIAM said underwriting profit contracted by 21.2% to RM810 million during the six months, largely due to losses in motor and medical and health insurance lines of business.
"Daily claims payout amount for the general insurance industry was RM15.2 million in 2021 where motor daily claims payout represented a significant majority of the total at RM12 million per day," it added.
More consumers buying insurance on perceived flood risks
Citing raised consumer awareness of the risks of damage to property and assets from flash floods in recent memory, PIAM said motor (comprehensive) flood take-up rate more than doubled in 1H22 to 12% compared with the take-up rate of 5% for the full 2021.
Fire (material damage) flood take-up rate also increased slightly to 31% in 1H22 compared with 30% for the full 2021.
Meanwhile, PIAM said the average premium reduced for motor third party fire & theft insurance, with a contraction of 0.1% effective rate per annum, and significantly so for the motor third party, with a contraction of 4% effective rate per annum, in the past five years.
"Over any comparative time periods observed above, motor [third party] saw the sharpest drop in average premium. The average premium for TP was 31% cheaper in 1H22 (at RM103) compared with 10 years ago in 2013 (RM149) thus benefitting the B40 segment of society," the association said.
It added that average premium has increased marginally for motor comprehensive policies over the past five years, growing at 0.5% effective per annum. Still, the figure has fallen far short of keeping pace with inflation rate over the same period.