Japan’s recent earthquake might result in higher insurance premiums
According to the General Insurance Association of Singapore (GIA),
the disaster is expected to seriously impact many global insurers,
leading to an increase in the cost of insurance protection for consumers.
In particular, motor insurance premiums in Singapore are expected to
continue increasing this year as insurers seek to recoup underwriting
losses, GIA said.
The motor insurance segment’s underwriting losses widened to
S$48.9 million last year from S$44.5 million in 2009. This was partly
attributed to the impact of major local flooding incidents.
GIA said that the major floods last year resulted in 428 motor insurance
claims totalling S$11.6 million.
The number of reported accidents involving motor vehicles in Singapore
also remained high at about 162,500 last year.