Life insurers' new premiums jump 3% to $4.38b for Q4 2020

New policies bought online surged to 206,679, most of which were single premiums.

Singapore’s life insurance industry posted $4.38b in weighted new business premiums for Q4 2020, a 3% jump from 2019, according to the Life Insurance Association (LIA).

LIA reported a recovery in H2 2020 after the initial fallout from the pandemic, which affected policy uptake most significantly in Q2. New policies purchased online skyrocketed to 206,679 versus 9,971 in 2019, most of which were single premium products such as short-term non-par endowment plans, par whole life plans, and universal life plans.

Sales of single premium products recorded a 47% jump YoY in weighted premiums amounting to $1.84b. Single premium par and non-par products comprised 80% of all single-premium sales, whilst single premium linked products made up the remaining 20%. CPFIS-included products comprised 12%, and cash-funded products accounted for the remaining 88%.

On the other hand, annual premiums dropped 15%, amounting to $2.55b in total weighted annual premiums.

Total new business premiums for individual health insurance reached $377.7m YTD in Q4. Overall, Integrated Shield Plans (IPs) and IP rider premiums accounted for 88% ($331.2m) and the remaining 12% ($46.5m) consisted of other medical plans and riders. Singaporeans and Permanent Residents who were covered by IPs and riders rose 33,000 as of end-December.

The uptake of retirement policies plunged 23%, with a total of 39,302 policies purchased as of end-December and totaling $341.4m in weighted new premiums for 2020.