Motor insurers make first profit in 5 years

In a first in five years, motor insurers have posted an underwriting profit of $21.2 million in 2011.

The industry turned around from a $48.9 million loss in 2010.

The Straits Times reported that the General Insurance Association (GIA) said the average premium collected from motor insurance rose by 2.5 per cent in 2011 to an all-time high of $1,274.

Average motor premium had been rising year on year since 2006, when it was $867.

This spells good news for motorists, especially the accident-free ones, as premiums are likely to stabilise.

GIA president Derek Teo told the Straits Times that whether premiums will drop depends on the level of competition in the market.

He also said the improved performance of the motor insurance industry is possibly due to measures introduced in recent years to tackle fraudulent claims.

Injury claims, however, remain a concern, especially among young drivers, noted Mr Teo to The Straits Times.

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