Profitability of motor insurance in Singapore

Abstract

This project was undertaken to analyse the profitability of motor insurance business in Singapore. Compared to most other classes of general insurance business, motor insurance has generally been found to be unprofitable. Furthermore, this class of business has given rise to the most number of disputes being referred to the Insurance Ombudsman Committee (IOC) for assistance. Hence, this has prompted our group to undertake this area of study. This project provides an insight and summary of the past and predicted future performance of the motor insurance industry by analysing various factors such as the pricing system, gross premium income, incurred loss ratio, services provided, and external factors. The contents of this project is relatively comprehensive and is thus suitable to be read by any person who has an interest in the subject.