Life insurance sales in Singapore up 38% in first 9 months of 2021
THE life insurance industry in Singapore posted S$4.11 billion in weighted new business premiums in the first 9 months of this year, up 38 per cent from the same period last year.
The Life Insurance Association, Singapore (LIA) said in a statement on Thursday that sales of single-premium products' weighted premiums grew by 28 per cent in the third quarter of 2021 year on year.
This translated into a 68 per cent year-on-year increase in weighted premiums, amounting to S$2.03 billion for the first 9 months of this year.
Within this segment, single-premium participating and non-participating products comprised 84 per cent of all single-premium purchases; single-premium linked products made up the remainder.
Participating funds pool premiums paid under participating policies and policyholders receive "dividends" or "bonuses" through investment profits made by the life insurer.
Policyholders of policies within non-participating funds are not entitled to profits the fund makes. Instead, a linked fund pools premiums paid under investment-linked portfolios and invests in assets. Policyholders can sell their units in such a fund to make a profit if the fund's investments perform well.
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Such products funded by cash accounted for 92 per cent of the segment, while CPF Investment Scheme (CPFIS)-included products comprised the remaining 8 per cent.
Annual premium products recorded an 8 per cent dip in growth in Q3 2021 compared to figures a year ago, although sales still rose 17 per cent for the first 9 months of the year.
About 371,000 new policies were purchased online in the first 9 months of the year, marking a sharp increase from the 120,396 bought in the corresponding period last year.
Another 25,000 Singaporeans and Permanent Residents (PRs) were covered by Integrated Shield Plans (IPs) and riders as at Sep 30, 2021, with approximately 70 per cent of Singapore residents protected by such plans.
Total new business premiums for individual health insurance for the first 9 months of 2021 amounted to S$268.2 million; IPs and IP rider premiums accounted for 82 per cent of the sum. The balance comprised other medical plans and riders.
There was a 12 per cent growth in retirement policies, amounting to an additional 32,297 policies taken up year on year in the first 9 months of this year. Such policies accounted for 7 per cent of total weighted premiums taken up.
LIA also noted that total in-force annual premiums for the group insurance business rose by 21 per cent from the corresponding period a year ago, amounting to S$1.79 billion.
The industry's workforce's dipped by 73 to 8,728. Representatives holding exclusive contracts with companies that operate a tied-agency force fell by 264 to 15,022.
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