In the first half of 2019, annual premium policies recorded a 7% y-o-y increase, amounting to S$1.44 billion in total weighted annual premiums, according to the latest industry results from Life Insurance Association, Singapore.
The stable uptake of annual premium products focused on long-term protection augurs well in helping to narrow the protection gaps in Singapore, said LIA Singapore President Khor Hock Seng. (Read: Life Insurance Association's priorities for 2019 - Newly-elected LIA President Khor Hock Seng)
However, Singapore’s life insurance industry recorded a 2% decline to $1.97 billion in overall weighted new business premiums in the midst of the nation’s slowing second quarter growth.
The global market uncertainty and economic slowdown impacted single premium policies as it recorded a 22% decline in weighted single premiums to $531.9 million.
(Source: LIA Singapore)
Industry initiatives to narrow the protection gap
Following the quantitative Protection Gap Study (PGS) which revealed that people in Singapore have a mortality protection gap of 20 per cent and critical illness (CI) protection gap of 80 per cent, LIA Singapore embarked on a qualitative study to deep dive and better understand the barriers to bridging these protection gaps.
Key findings from the Protection Gap Report on factors contributing to Singapore’s protection gap include:
(Source: LIA Singapore)
Mr Khor said, “Our qualitative study findings revealed that there are several perception barriers that are preventing people from getting their protection needs met.
“Through ongoing public education efforts as well as the upcoming digital protection calculator, we seek to help individuals here understand the importance of taking a long-term view and having their protection needs adequately met, so that they and their loved ones can have peace of mind.”
The digital protection calculator is targeted to be launched by October.
Conservative outlook for the year
The life insurance industry maintains a conservative outlook for the rest of the year, against the backdrop of an uncertain global and local economy. LIA said it will continue efforts that support Singapore’s progress, particularly in workforce transformation, driving innovations to support industry growth, and bridging the mortality and CI protection gaps.
For more info, download the full media release here.
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