Life insurance sales surge 38% in H1 2011

The industry’s new business premiums amounted to a whopping $941.5m.

Following positive sales in the first quarter of this year, the life insurance sector saw growth momentum continue into its second quarter. The industry registered a total of $941.5 million in weighted* new business premiums for the first half of 2011, representing a significant 38 per cent improvement over the corresponding period in 2010.

The strong performance was driven by growth of bancassurance of 100 per cent year-on-year. Weighted regular premiums sales hit $620.2 million, registering a 31 per cent growth over the same period last year, while single premium business doubled by 54 per cent to $321.3 million. Of this amount, 21 per cent comprised CPF-funded sales.

“The first half year’s performance was buoyed by growth in bancassurance, mostly from sales of savings-oriented products. Growth through other channels maintained a healthy 20 per cent,” said Mr Tan Hak Leh, the President of the Life Insurance Association.

New health insurance sales increased by 3 per cent to $79 million compared to the first half of last year. The bulk of this - 86 per cent - went to Integrated Shield Plans and riders. As at 30 June 2011, a total of 2.42 million lives were covered by health insurance with paid up premiums amounting to $810 million.

Photo from Darcie