According to StarBiz, the price of motor insurance might go up soon, spearheaded by two insurance firms – MAA Assurance and AmAssurance. Although the government regulates prices of motor insurance, insurance companies can charge higher premiums through loading charges.
Loading charges have not been increased significantly before, except for AmAssurance’s increase of third party coverage loading charges half a year ago and MAA Assurance’s extra charges for third party coverage as well as commercial vehicles.
Following the move of these two companies, it’s expected that other insurance companies will follow suit. The rationale for this price increase is the high number of claims recently, with a ratio that exceeded 71% last year. Even March 2007 figures have reached 75%.