Motor & Fire - Motor and fire lines of business remained the leading premium contributors, with motor maintaining its position as the largest line of business, commanding a 45 per cent share of the total premium.
Despite the upward trend in gross written premiums, the underwriting profit contracted by 26 per cent to RM1.16 billion. This decline is largely due to a contraction in profitability for motor and fire lines of business. Motor insurance experienced an underwriting loss of RM156 million with net claims incurred ratio of 66.7 per cent, returning to pre-pandemic levels. Inflationary cost pressures on vehicle spare parts and a rise in road accident rates are challenges facing this line of business.
Fire Insurance - The fire line of business, accounting for a 21 per cent share of total premiums, recorded an eight per cent increase in premiums in 2023, totaling RM4.4 billion compared to 2022. The decline in underwriting profit due to increasingly volatile weather events, including various flood events in 2023, coupled with rising reinsurance costs which will continue to exert pressure on underwriting margins.
General Insurance Industry - The statement said the overall general insurance industry settled an average of RM21 million daily on total insurance claims in 2023, an 11 per cent increase year-on-year.
Over the past decade between 2014 and 2023, the payout for motor claims averaged RM13.4 million per day and constituted 72 per cent of the total payout. In 2023, payout for motor claims rose to RM15.1 million per day, the highest payout in the recent five years.
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