Maldives Monetary Authority (MMA) - central bank - has confirmed the insurance businesses has grown significantly over the past five years topping MVR 1 billion or more.
According to the central bank's annual report insurance industry has been growing steadily with total assets recorded an increase of 9% during 2017 to reach MVR 1.1 billion while the GWP (Gross Written Premium) increased by 15% to reach MVR 767.3 million.
Based on asset composition, investments represented 28% of the total assets and reinsurance and premiums receivable accounted for 25% and 17% respectively.
According to MMA the gross claims paid by insurance companies in 2017 "amounted to MVR 240.4 million, which is a decrease of 7% compared with 2016. The report further added that of the gross claims paid, 45% (MVR 108.1 million) was for health insurance policies followed by 30% (MVR 72.0 million) for marine hull insurance policies.
MMA noted that while the insurance sector is small in relation to the country's GDP, the positive growth in the industry in 2017 is indicated by two key measures "used internationally to determine the growth of the industry: insurance penetration and density."
For general insurance business insurance penetration increased slightly to 1.2% last year from 1.1% in 2016 insurance density increased to USD 103.5 from USD 91.5 in 2016.
The reason for the growth in premium underwritten during 2017 is contributed by the increase in health, marine hull and aviation insurance business.
Despite the businesses of insurance sector showing growth over the past years, the general insurance industry has "been experiencing declining profits from 2015 onwards, mainly because of increased competition and reduced rates.
