Life insurance sales in Singapore up 61% to S$2.68b in H1
SINGAPORE'S life insurance industry posted a total of S$2.68 billion in weighted new business premiums in the first half of 2021, up 61 per cent from the same period a year ago.
In a press statement on Thursday, the Life Insurance Association, Singapore (LIA) noted that during the same period last year, sales were depressed as physical meetings were prohibited due to the Covid-19 "circuit-breaker" measures.
LIA Singapore president Khor Hock Seng said that the strong showing of business results demonstrates the level of stabilisation of Singapore's economy as compared to the same period a year ago.
"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," he added.
Among the different products, single-premium products drove the growth in sales, recording a 106 per cent increase in weighted premiums amounting to S$1.28 billion in the first half of this year.
Single-premium par and non-par products made up 84 per cent of all such purchases, while single-premium linked products made up the remainder. CPF insurance scheme-included products comprised 8 per cent of such sales, while cash-funded products made up the remaining 92 per cent.
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Meanwhile, annual premium product uptake increased by 35 per cent from the same period last year, amounting to S$1.4 billion in weighted annual premiums.
More policies were also bought online, with 203,351 policies purchased online by customers without financial advisory in H1 2021 compared to 32,952 a year ago.
A further 43,000 Singaporeans and permanent residents were covered by Integrated Shield plans (IPs), bringing the total number of Singapore residents covered under IPs and riders up to 2.85 million.
Total new business premiums for individual health insurance for the first half of this year amounted to S$176.8 million. Of this, IPs and IP rider premiums accounted for 82 per cent of new business premiums, or S$144.7 million, while the remainder comprised other medical plans and riders.
Retirement policies also saw a 34 per cent increase in uptake of retirement policies compared to the same period a year ago, with a total of 22,137 retirement policies purchased as at June 30.
Retirement policies also accounted for 7 per cent of total weighted premiums for the half year, totalling S$198.2 million.
Total in-force annual premiums for group insurance also rose by 20 per cent compared to year-ago figures, totalling S$1.75 billion.
Regarding the life insurance industry's ESG commitments and workforce transformation goals, Mr Khor said that LIA will continue to help the industry adapt as technology and digital tools impact the way insurers work.
"The LIA, as a strategic partner of the Green Finance Industry Taskforce, is working together with the general insurance and reinsurance sectors to build the industry's capacity for the progressive adoption of local best practices and international standards," he said.
As for insurers' product licence classifications, insurers holding "Normal" licences contributed to 98 per cent of new sales, while those holding "Defined Market Segments" insurers made up the remaining 2 per cent of new sales.
Singapore's life insurance industry workforce dipped slightly to 8,589 as at June 30 compared to year-ago numbers, while 14,893 representatives held exclusive contracts with companies that operate a tied-agency force.
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