Life insurance sales in Singapore up 32.2% to $1.37 billion in Q1, strongest growth since 2020

Source: The Straits Times
Author: Sue-Ann Tan

SINGAPORE - The life insurance industry here saw its strongest set of results in the first quarter of 2024 since the same period in 2020.

Weighted new business premiums for the quarter ended March surged 32.2 per cent year-on-year to $1.37 billion. the Life Insurance Association, Singapore (LIA) said on May 14. These premiums are for new policies.

Of this total, single premium policies recorded a 46.4 per cent increase in weighted premiums to $500.4 million.

LIA said the increase in demand for single premium policies may be attributed to a less volatile macroeconomic environment, with Singapore's economy picking up in the first three months of 2024.

Weighted premiums for annual premium policies grew 25.2 per cent year-on-year to $866.5 million. LIA said the continued uptake in such policies "showed a sustained trend where meeting protection needs are being prioritised in Singapore."

This is further evidenced by the increase in the sales of non-participating products to 42 per cent for the quarter, LIA added. Such products consist of plans that do not provide dividend payouts to the buyer.

The association said the industry's first-quarter performance was its strongest compared with corresponding periods in the last few years, since the onset of the Covid-19 pandemic.

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.

"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. Our priority remains in helping the population meet their financial and protection needs."

LIA noted that Integrated Shield Plans (IPs) remained a critical component of health insurance coverage.

About 35,000 more Singaporeans and permanent residents were covered by IPs as at March 31.

In total, 2.94 million people - which accounts for about 70 per cent of Singapore residents - are protected by IPs, which provide coverage on top of MediShield Life.

New business premiums for individual health insurance in the first quarter rose 5.3 per cent year-on-year to $98.6 million. IPs and IP rider premiums accounted for over 80 per cent of this amount, with the remainder made up of other medical plans and riders.

LIA said: "Medical inflation continues to be a challenge in Singapore and requires the joint efforts of all parties within the healthcare eco-system to actively manage.

"The life insurance industry is supportive of increased transparency across the entire healthcare system including clear value and quality of care metrices. The industry remains committed to working in close collaboration with regulators and the medical industry through the Multilateral Healthcare Insurance Committee to address this challenge."