ENGINEERING and personal accidents insurance have overtaken motor and fire insurance in contributing to the growth in volume in the short-term insurance sector in the first quarter, according to a latest report by the Insurance and Pensions Commission (Ipec).
BUSINESS REPORTER
According to the Ipec Short-term Insurance report for the quarter ended March 31, engineering and personal accident insurance contributed $1,87 million and $1,69 million respectively.
“This shows a departure from the previous years where the major drivers of growth in the volume of business written were motor and fire insurance,” Ipec said.
“Notwithstanding the fact that motor and fire insurance ceased to be the major drivers of growth in the quarter under review, the two classes remained the dominant classes of business accounting for 38,17% and 24,69% of total gross premium written during the quarter ended 31 March 2014 respectively.”
During the period under review aviation and engineering insurance were the fastest growing classes of business with percentage growth of 156,75% and 42,63%.
Gross Premium Written (GPW) increased by 6,82% to $71,2 million compared to the same period last year.
In the first quarter of this year the least performing classes of business in terms of growth in GPW were hail and health insurance.
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Ipec said almost half of the 25 non-life insurance companies that were operational as at March 2014 were compliant with the minimum capital requirements of $1,5 million that was effective by June 30 2014 while the remainder of the insurers capital levels were ranging between $0,52 million to $1,49 million.
The average capital maintenance ratio for 13 insurers who did not comply with the minimum capital requirement was 73,76% as at March 31 2014.
This implies that, on average, the capital position of the 13 insurers fell short of the minimum capital requirement by $0,39 million.
Ipec said that during the period the commission conducted an inspection and it was revealed that Altfin Insurance Company capital position was worse than what they reported, after disqualifying some assets which they had reported.
