Singapore’s life insurance industry records 7% jump to $2.16b in new business premiums

Citizens were wooed by new product offers.

More of the city-state’s families are bolstering their protection needs, illustrated by the robust growth of the country’s life insurance business.

According to a statement by Life Insurance Association of Singapore, there was a 21% increase in the uptake of annual premium products in 3Q2015 compared to last year, while the purchase of single premium investment-linked policies saw a 13% jump.

LIA Singapore attributed the growth to new product launches, sales and marketing initiatives, as well as an increased uptake in savings-oriented products through bancassurance.

“Overall, the industry achieved a nine per cent growth to S$1.51 billion of weighted annual premium products, and a three per cent growth to S$658.9 million of weighted single premium products for YTD 3Q2015,” LIA Singapore said.

Meanwhile, participating products continued to provide the largest contribution, with 53% for the period.

“17 per cent of the weighted single premium products comprised CPF-funded policies. Investment-linked products contributed S$434 million in the first three quarters of 2015, accounting for 20 per cent of total weighted new business premiums,” LIA Singapore said.

From April 7 to September 30 this year, a total of 420 DPI policies were sold by LIA Singapore, with 96% comprising of regular premium term life policies. These policies provide insurance protection at affordable premiums, and can serve those seeking to provide basic protection for the family, LIA Singapore said.

“Through DPI products, we are pleased that the industry is able to meet the basic protection needs of families in Singapore,” LIA Singapore added.