Singapore:Life Insurance industry achieved 0.4% growth in 2019 uplifted by sustained trajectory of annual premium business

| 10 Feb 2020

The Life Insurance Association, Singapore (LIA Singapore) announced a set of industry results for the period January to December 2019 (YTD 4Q2019). Singapore's life insurance industry recorded a total of S$4.3 billion in weighted new business premiums for YTD 4Q2019, a 0.4 % increase from the corresponding period in 2018.

The industry continued to make headway in narrowing the protection gap in Singapore with an increase in uptake of annual premium policies which recorded a 7% increase from the same period last year. This amounted to S$3.0 billion in total weighted annual premiums.

Increased uptake of retirement policies
There is increasing recognition and actions taken by consumers, encouraged by the industry and government, to take more pro-active efforts in planning for retirement. The industry recorded a 34%  increase in the uptake of retirement policies in YTD 4Q2019 compared to a year ago based on policy count. A total of 51,040 policies were purchased as at 31 December 2019, a significant 12,920 more policies compared to the same period in 2018. Making up about 11% of total weighted premiums for YTD 4Q2019, retirement policies totalled S$469 million in weighted premiums for the year.

 

Integrated Shield Plans (IPs) remain a significant component of health insurance
58,000 more Singaporeans and Permanent Residents were covered by IPs and riders as at 31 December 2019. 2.79 million lives approximately 69 per cent of Singapore residents – are protected by IPs and riders, which provide coverage on top of MediShield Life.

Total new business premiums4 for individual health insurance for YTD 4Q2019 amounted to S$465.7 million. Overall, IPs and IP rider premiums accounted for 90% (S$419.7 million) and the remaining 10% (S$46.0 million) comprised other medical plans and riders.

 

Distribution Channels
The contribution of new business by the different channels is as follows:

Distribution Channel By Weighted Premium (%) By Number of Policies (%)
Tied Representatives 34.0 50.7
Bank Representatives 36.0 11.3
Financial Adviser Representatives 24.7 22.1
Online Direct Channel 0.3 0.8
Others (products sold without
intermediaries, e.g. DPI, ElderShield)
5.0 15.1

 

Key highlights from the industry results:

  • Continued growth in total sum assured for new business, recording a 7% growth year-on-year, amounting to S$149.5 billion
  • Annual premium policies recorded a 7% increase from the same period last year, amounting to S$3.0 billion in total weighted annual premiums
  • Uptake of retirement policies recorded a 34% increase compared to a year ago based on policy count, with a total of 51,040 policies being purchased as at 31 December 2019, a significant 12,920 more compared to the same period in 2018
  • 58,000 more Singaporeans and Permanent Residents are being covered by Integrated Shield Plans (IPs) and riders, as at 31 December 2019

 

 


Read more:

Indonesia:Life insurers call for policyholder protection agency

New Zealand:Most Kiwis underinsure their lives

At the end of the day it's all worth it - Joseph Janer, President of PIFAAP (2017-2019)

 

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