May 29, 2023

Tartufocracia

Be life confident

Singapore life insurers report sales rebound

2 min read

“The strong showing of business results seen in the life insurance industry in the first half of this year reflects a level of stabilisation of Singapore’s economy from the immediate impact of COVID-19 in 1H2020,” said Khor Hock Seng, LIA president. “The growth in uptake of life insurance also seems to show that more people are placing greater importance on providing for their long-term financial and healthcare needs in the midst of an evolving pandemic environment.”

Single-premium products remained the driver of growth for the half, having recorded a 106{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} year-on-year increase in weighted premiums, amounting to SG$1.28 billion. Single-premium par and non-par products accounted for 84{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} of all single-premium purchases, while single-premium linked products made up the remaining 16{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}.

Annual premium products saw uptake increase by 35{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} from the same period last year, bringing in SG$1.4 billion in weighted annual premiums.

LIA also noted a strong increase in the number of policies purchased online, due to the shift to more remote forms of doing business. From 32,952 policies from the first half of 2020, online-bought policies grew by over 500{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} to 203,351 in the first six months of 2021.

Total new business premiums for individual health insurance amounted to SG$176.8 million for the half. Overall, Integrated Shield Plans (IPs) and IP rider premiums accounted for 82{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} (SG$144.7 million), and the remaining 18{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} (SG$32.1 million) was composed of other medical plans and riders.

Uptake of retirement products grew by 34{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}, with 22,137 policies bought in the first half.

Bank representatives brought in the largest share of weighted premiums at 32.9{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}, followed by tied representatives at 31.9{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}. Financial adviser representatives came in third at 28.4{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}. Online direct channels made up 3.9{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} and other direct channels accounted for 2.9{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}.

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