Life insurance industry records $1.68b new business premiums

This was against a backdrop of a soft labour market.

The Life Insurance Association Singapore (LIA Singapore) announced that the life insurance industry has reached a total of $1.68b in new weighted new business premiums for the first six months of the year.

According to the group, the industry recorded a significant 10% increase in sum assured for new business compared to the corresponding period in 2016, totalling $55.9b. 

This is a positive development in the context of economic uncertainties, an ageing population and a soft labour market.

Compared to last year, the industry recorded a 10% increase to $547.3m in weighted single premiums and an 11% increase to $1.13b in weighted annual premiums.

Meanwhile, health insurance premiums totalled $154m for 1H17, of which Integrated Shield Plans (IP) premiums and IP riders accounted for 90% at $139m. The remaining 10% at $15m came from other medical plans and riders.

As at 30 June 2017, 2.92 million, approximately one in two individuals in Singapore, are insured.

"Whilst we tirelessly work towards narrowing Singapore’s protection gap, helping Singaporeans to be better prepared for retirement is also a priority. We see a steady take-up of products designed to provide regular payouts from retirement age. This shows that people are appreciating the importance of preparing ahead for their future years." LIA Singapore president Patrick Teow said.

He added that retirement planning is ongoing concern for both pre-retirees and their children because by 2030, there will only be two working adults supporting one retiree, as compared to about five per retiree last year.

"The younger generation will be shouldering a greater financial burden of supporting the ageing population and ensuring that they have enough for other milestones, such as marriage and setting up their own families," he explained.