A policyholder received a quotation of $900 for the renewal of his motor insurance from company A. He visited our business centre. Our current rate for his risk profile is $766.
He went back to company A, which promptly reduced the premium to $700. Later, company H reduced the premium to $654.
NTUC Income will continue to charge our premium rate based on our cost of claims and expenses. This is an adequate rate.
Some competitors are willing to undercut our premium rate to win over the business. However, as their claim cost and expenses are higher, they will have to increase the premium rate on the following year.
This irresponsible price cutting is not sustainable.
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