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Weighted new business premiums up 3% in H1: Life Insurance Association

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LIA Singapore president Khoo Kah Siang noted that amid the relatively low interest rates, sales of traditional single premium plans dropped while sales of investment-linked plans (both single premium and regular premium) picked up despite the volatile equity market.

THE life insurance industry clocked in a total of S$1.35 billion in weighted new business premiums in the first half of this year, up 3 per cent over the same period last year.

Latest figures from the Life Insurance Association, Singapore (LIA Singapore), showed a 3 per cent growth in weighted annual premium products to S$964.9 million and a 2 per cent growth in weighted single premium products to S$387.8 million.

Some 19 per cent of the weighted single premium products were CPF-funded policies.

LIA Singapore president Khoo Kah Siang noted that amid the relatively low interest rates, sales of traditional single premium plans dropped while sales of investment-linked plans (both single premium and regular premium) picked up despite the volatile equity market.

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Given the low interest environment, yields for shorter term non-linked single premium plans may be less attractive to customers.

Investment-linked products accounted for 20 per cent of total weighted new business premiums, while participating products still made up the lion's share of 55 per cent during the period.