SG's life insurance total weighted new business premiums surge 27% YoY in H1'24

Employment in the market was stable, a slight decrease of 0.5% versus last year.

Singapore’s life insurers bagged $2.12b (S$2.77b*) in total weighted new business premiums during the first half of the year (H1 2024), a 26.6%* year-on-year (YoY) increase. 

This growth is attributed to a favourable macroeconomic environment, with Singapore's economy outperforming expectations in the second quarter of 2024, the Life Insurance Association of Singapore (LIA) said.

The demand for both single and annual premium policies has risen, reflecting a continued focus on savings and protection needs. 

In the second quarter of 2024 (Q2 2024), the industry saw significant gains in both single-premium and annual premium policies. 

Single-premium policies grew by 32.9% YoY compared to the previous year, totalling $697.68m (S$918.0m) for H1 2024.

Annual premium policies also experienced a 23.7%* YoY increase, amounting to $1.42b (S$1.85b*).

In-force premiums for Group Life & Health insurance continued their steady growth, with an 11% increase in the second quarter of 2024 compared to the previous year, bringing the total to $1.82b (S$2.40b).

Individual health insurance premiums also rose by 7.1% YoY during H1 2024. Financial Advisers (FA) Representatives played a significant role in this growth, achieving $20.90b (S$27.5b) in sum assured for the period, representing 39.1% of the total sum assured.

Overall, the industry recorded $53.35b (S$70.2b) in total sum assured, reflecting a 6.7% YoY increase. Integrated Shield Plans (IPs) remain a key component of health insurance coverage in Singapore, with approximately 71,000 new IPs taken up by Singaporeans and Permanent Residents by June 2024. Currently, 71% of Singapore's residents, or 2.9 million lives, are covered by IPs.

Total new business premiums for individual health insurance amounted to $167.73m (S$220.7m) in H1 2024, a 7.1% YoY jump. IPs and IP rider premiums accounted for 85.4% of this total. During the first six months of the year, the life insurance industry disbursed $8.33b (S$10.96b) to policyholders and beneficiaries, surging 82.8% YoY.

Of this amount, $7.63b (S$10.04b) was for policy maturities, whilst $704.52m (S$927m) was for death, critical illness, or disability claims covering over 10,600 policies. 

The life insurance industry also maintained stable employment levels in H1 2024, with a slight decrease of 0.5% compared to the same period in 2023. As of 30 June, the industry employed 9,593 individuals.

Additionally, 13,084 representatives held exclusive contracts with companies operating a tied-agency force during the same period. Despite the minor dip in workforce numbers, the industry's overall employment landscape remains robust.

“As Singapore’s economy continues to pick up, with GDP forecasted to come in closer to its potential rate 2% to 3% for this year, the life insurance industry remains cognisant and agile to seize opportunities to grow as we prioritise efforts to meet the protection needs in Singapore,” Dennis Tan, president of LIA Singapore, said. 

Tan further highlighted the ongoing challenge of healthcare inflation, with medical costs projected to rise by 10.7% this year due to various factors, including the rising costs of treatments, medical advancements, and an ageing population.

(US$1.00 = S$0.76)

*Note: This article was updated on 28 August to reflect changes in the press release provided by LIA. These figure updates were made by the source to enforce clarity from their data.