Gross premium written (GPW) for non-life insurers was up 9,32% to $169,79 million in the third quarter of 2017 compared to the previous driven by the growth in motor insurance business, a new report has shown.
In the same period in 2016, GPW was $155,31 million, according to an industry report by the Insurance and Pensions Commission (Ipec).
“The increase in total GPW was due to a growth in motor insurance business, which contributed 45,51% of business written from the previous 43,92%. This is partially attributable to reduced leakages to unregistered insurers due to the introduction of automation in motor insurance licensing,” Ipec said.
Ipec said insurance brokers placed $72,34 million or 42,6% of GPW for non-life insurers in the period under review, which was up 2,76% from the $70,46 million written in the same period in 2016.
The asset base for the insurance industry increased to $235,35 million in the period under review from $188,01 million in the comparable period last year.
Ipec was wary that significant proportions of assets were tied up in fixed assets and premium debtors adding the assets may not be readily available to meet policyholder obligations as and when they fall due.
“The commission, therefore, urges non-life insurers to come up with strategies that will reduce assets in such classes. However, total assets summed up of cash and cash equivalents, prescribed assets and equities, which can easily match non-life insurance liabilities accounted for 39,43% as at September 30 2017,” Ipec said.
Ipec said the distribution of business written in terms of GPW remained skewed towards motor and fire insurance, with the two classes accounting for 63,54% of the total business written during the period under review.