Total gross premium written by direct non-life insurers rose by 1,11% to $155,31 million in the nine months to September 30 from the year comparable driven by the growth in motor insurance business, a new report by the Insurance and Pensions Commission (Ipec) has shown.
BY BUSINESS REPORTER
In the same period last year, GPW was $153,60 million.
The motor insurance business grew by 7,70% over the prior year.
“This growth could be attributable to issue of electronic cover notes, which implies that most motor vehicles, which had fake insurance, now have genuine insurance reported in the books of duly registered insurers,” Ipec said.
Total assets for non-life insurers decreased to $188,01 million as at September 30 2016 from $191,06 million as at June 30 2016.
Ipec said the decrease in total assets was mainly owing to a decline in investments in prescribed assets and money market investments, which declined $17,39 million.
“The decrease in money market investments was in tandem with the reported increase in investments in prescribed assets implying that the investments in prescribed assets could have been mainly funded by disinvestments from money market investments,” Ipec said.
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“The decrease in total assets experienced is in line with the trend observed over the years, where premium debtors on annual policies are realised and written off as policies reach their anniversary date.”
The insurance regulator said the asset base for short term insurers was fairly distributed across different asset classes but noted that it was worried that a significant proportion of assets was tied up in fixed assets and premium debtors. Such assets may not be readily available to meet policyholder obligations as and when they fall due, it said.
“The commission urges the industry players to come up with strategies to reduce assets in such classes. On the other hand, total assets attributable to cash and cash equivalents, prescribed assets and equities, which can easily match non-life insurance liabilities accounted for 51,65% as at September 30 2016,” Ipec said.
