DRIVERS, expect a reprieve from escalating motor insurance premiums this year.
Motor insurance companies, now in a healthier state following consecutive years of rising premiums, are likely to impose only marginal increases, the General Insurance Association of Singapore (GIA) said yesterday when it released its performance figures for last year.
It said industry losses narrowed sharply to $44.5 million last year from $214 million the year before, partly as a result of steep premium hikes last year.
The hike pushed the amount of premiums collected across the billion-dollar mark for the first time: Insurers collected $1.08 billion from a record 925,518 vehicles on the road.
GIA president Derek Teo said pre-miums had to be raised for the industry to address 'the loss situation' of the last few years. 'We've now reached a stabilised level, but we're not totally out of the woods,' he added.
He said if premiums were to rise, the increase would 'not be as significant as before'.
[SOURCE: http://www.straitstimes.com]
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