Motor insurance in Singapore : problems and prescriptions

Abstract

Motor insurance makes up 32% of the total insurance business in Singapore. On statistics , the loss ratio is 62.7%. However, claims is only one aspect of the business expense. Overall, motor insurers are not making enough premium revenue to pay claims, administrative expenses, acquisition expenses. This report seeks to identify and examine the various reasons why motor insurers are suffering from deteriorating results. It emphasizes that immediate action is needed to avoid the erosion of profits from the motor insurance market. Furthermore, likely effects of the current situation are studied and this report attempts to recommend possible solutions to the problems.