The Business Times reported that motor insurance premiums have remained flat or dipped slightly as stiff and increasing competition have caused more players to compete for higher market share in an increasingly profitable segment.

Within the big three companies comprising - NTUC Income, AXA and AIG - two have held their rates while AXA has cut it by 4.5 percent. Moreover online insurer DirectAsia has cut its premiums by 3 percent.

With the new rates, a 32-year old single male working in the banking sector with five years' driving experience and owns a year old Toyota Corolla Altis with zero no claims discount will have a premium from NTUC Income at a marginally lower $1,956, while AIG's is unchanged at $3,232 and AXA's cut to $2,637. DirectAsia's premium comes up to $1,783.

In 2012, the motor insurance industry recorded a $50 million underwriting profit - the second year it has been in the black.

Moreover slightly more than 12 months ago AXA, which was Singapore's third biggest motor insurer, merged with HSBC - allowing it to overtake AIG at second place while NTUC Income retains its top spot with a 17.6 percent market share as of the first quarter in 2013. AXA and AID follow up at 15.9 percent and 14.1 percent respectively.

The General Insurance Association of Singapore (GIA) has tried to contain inflated claims over the past few years with several initiatives, including the Motor Claims Framework, the pre-repair inspection requirement and the Non-injury Motor Accident (Nima) scheme. Yet bodily injury claims are on the rise for the last four years, both in terms of frequency and quantum.