Singapore life insurance sales up 32.2% to S$1.4 billion in Q1
Integrated shield plans remain a critical component of health insurance coverage
SINGAPORE’S life insurance industry recorded nearly S$1.4 billion in weighted new business premiums for the first quarter of 2024, representing a 32.2 per cent year-on-year increase to mark the sector’s strongest Q1 performance since the Covid-19 pandemic.
On Tuesday (May 14), the Life Insurance Association Singapore (LIA) said uptake of single-premium policies grew 46.4 per cent to S$500.4 million for the quarter.
It attributed this to a less volatile macroeconomic environment amid a pickup in Singapore’s economy.
Total weighted premiums for annual premium policies grew 25.2 per cent year on year to S$866.5 million, which LIA observed to reflect a “sustained trend where meeting protection needs are being prioritised in Singapore”.
This is further evidenced by a 42 per cent increase in sales of non-participating products over the quarterly period, added the association.
LIA president Dennis Tan said: “The life insurance industry is starting the year positively by focusing and achieving progress in narrowing our nation’s protection gap as we grow the sector as a whole.
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“While the concerns about the potential impact of the macroeconomic environment remain pertinent, the industry continues to be agile to swiftly respond to consumer needs in Singapore.”
Integrated shield plans in focus
Out of S$33.8 billion in sum assured for Q1 2024, financial advisory representatives accounted for 37.2 per cent with S$12.6 billion.
This was followed by tied representatives at 36.3 per cent (S$12.3 billion), bank representatives at 18.4 per cent (S$6.2 billion) and online direct channel contributions at 5 per cent (S$1.7 billion).
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Others – referring to products sold without intermediaries – contributed 3.1 per cent or S$1.1 billion of total sum assured for the quarter.
LIA noted that integrated shield plans (IPs) remained a critical component of health insurance coverage, estimating that 35,000 more Singaporeans and permanent residents were covered by IPs as at end-March 2024.
Total new business premiums for individual health insurance amounted to S$98.6 million, up 5.3 per cent from the same period last year.
IPs and IP rider premiums accounted for 82.9 per cent (S$81.7 million) of this figure, with the remaining 17.1 per cent (S$16.9 million) comprising other medical plans and riders.
Medical inflation a challenge
LIA said medical inflation “continues to be a challenge in Singapore and requires the joint efforts of all parties within the healthcare ecosystem to actively manage”.
Slightly more than S$5 billion was paid out by the life insurance sector to policyholders and beneficiaries in Q1 2024 – up 94.6 per cent from the year prior.
The majority, or some S$4.6 billion, was for policies that matured, which LIA noted to be driven by the maturing of single-premium policies during the quarter from some member insurers.
The remaining S$463 million, was for death, critical illness or disability claims.
Citing recent forecasts by the Monetary Authority of Singapore, Tan highlighted expectations of stronger growth in the overall finance and insurance sector going forward.
“As we pursue efforts to drive this growth, we remain cautiously optimistic and adaptable, noting also that the median forecast of headline inflation came in at 3.1 per cent,” he said.
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