Singapore life insurance sales fall 16.7% to S$2.2 billion in H1
Daphne Yow
THE life insurance sector in Singapore recorded S$2.2 billion in weighted new business premiums for the first half of 2023, down 16.7 per cent from a year ago.
This was driven by a decline in single-premium policies – by 52 per cent to S$691 million.
Demand for such policies had fallen due to a volatile macroeconomic environment and increasing interest rates, the Life Insurance Association, Singapore (LIA Singapore) said in a statement on Friday (Aug 11).
The value of new annual-premium policies, however, rose 26.3 per cent to S$1.5 billion.
The weighted value for a single-premium policy is 10 per cent of the single premium. For annual-premium policies, the weighted value is 100 per cent of the annual premium; with adjustments for premium payment terms of fewer than 10 years.
New business premiums for individual health insurance also increased – by 32.1 per cent to S$206 million. Integrated Shield Plans (IPs) and IP rider premiums made up 83.9 per cent or S$172.8 million, with the remainder comprising other medical plans and riders.
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In the six months, the life insurance industry paid out S$6 billion to policyholders and beneficiaries – a 1 per cent increase. Of this, S$5.16 billion was for matured policies. The remaining S$838.6 million was for death, critical illness or disability claims for over 9,900 policies.
By product classification, par products made up 33 per cent of new sales. Non-par products made up 36 per cent. Investment-linked products made up the remainder.
Par products, or participating products, give policyholders a share of profits in the form of a non-guaranteed bonus or dividend.
On the manpower front, Singapore’s life insurance industry employed 9,640 people as at end-June. The 8.9 per cent increase in workforce reflected the onboarding of information technology talents to meet digital transformation needs. Tied representatives, who represent one insurer exclusively, numbered 13,838.
LIA Singapore said it would release the results of its nationwide Protection Gap Study in the coming weeks. The study looks at gaps in mortality and critical illness coverage. For the first time, it will also look at the protection gaps faced by platform workers.
“The life insurance industry will also continue to explore digitalisation initiatives while cultivating a pool of talent, aimed at bolstering operational efficiencies and elevating customer experiences,” said LIA Singapore president Dennis Tan.
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