Singapore life insurance sales skyrockets by 38% to S$4.11b

Sale of single-premium products surged to 28% for Q3.

Singapore’s sale of life insurance premiums has shot up by 38% to $3.04b (S$4.11b) in the first nine months of 2021 according to the Life Insurance Association, Singapore (LIA Singapore).

Single-premium products recorded a positive increase of 28% in weighted premiums for the Q3, when compared against the same period in 2020. This translated into a 68%t YoY increase in weighted premiums amounting to $1.50b (S$2.03b) for YTD Q3 2021. 

Despite a dip of eight per cent in growth when compared against the corresponding quarter in 2020, sales of annual premium products managed to record an increase of 17%, amounting to $1.53b (S$2.07b) in weighted annual premiums for YTD Q3 2021.

Meanwhile, the number of new policies purchased online continues to increase to 370,528 in YTD Q3 2021 compared to 120,396 last year. These are purchases transacted online by customers without financial advisory.

Meanwhile, LIA Singaproe said that Integrated Shield Plans (IPs) remain a key component of health insurance. Around 25 thousand Singaporeans and Permanent Residents were covered by IPs and riders as of 30 September. Around 70% of Singapore residents are protected by IPs and riders, which provide coverage on top of MediShield Life. 

Total new business premiums for individual health insurance for Q3 2021 amounted to $198.07m (S$268.2m). Overall, IPs and IP rider premiums accounted for 82%(S$220.8m) and the remaining 18% (S$47.4m) comprised other medical plans and riders.

“Sustainability in insurance is rapidly evolving on many fronts and insurers will need to keep pace by acquiring the necessary expertise and resources. Multiple efforts at the insurance industry-level are in progress to curate and provide training courses for our workforce on the different aspects of sustainability and for different levels of employees. COVID-19 has served to greatly accelerate insurers’ digitalisation journey. Again, insurers will continue to focus on equipping our workforce to embrace digitalised processes and new ways of working,” Khor Hock Seng, president of LIA Singapore, said