Singapore’s life insurance industry dips 9.7% in 9M23

The life insurance industry reported a YTD total of S$3.5b in weighted new business premiums.

Amid global economic uncertainty, sustained inflation, and geopolitical tensions, Singapore's life insurance industry reported a January to September total of S$3.5b in weighted new business premiums, down 9.7% from the previous year. 

Single-premium policies dropped 43.5% to S$1.1b. 

However, the third quarter (Q3) saw a 5% growth in total weighted premiums compared to last year, driven by annual premium policies. Annual premiums increased by 9.8% in Q3, reaching $886.9m.

Despite economic challenges, annual premium policies saw a 24.9% increase in year-to-date (YTD), amounting to S$2.4b. 

Tied representatives secured 37.9% of the total sum assured, with Financial Adviser Representatives contributing 37.0%. The industry recorded a total sum assured of $105.6b during YTD Q3 2023, up 3.1% from the previous year.

Integrated Shield Plans (IPs) continued to be a stable cornerstone for health insurance, covering approximately 70% of Singapore residents. 

ALSO READ: 20% of Singapore’s motor insurance claims are fraudulent – GIAJ

In YTD, total new business premiums for individual health insurance increased by 25.5% to S$321.1m. 

The life insurance industry paid out S$10.1b to policyholders and beneficiaries, a 16% increase YoY.

Employment in the life insurance industry rose by 6.9% compared to 2022, reaching 9,779 employees as of 30 September. The increase was attributed to a focus on digital transformation and a rise in claims-related roles.

Looking forward, Dennis Tan, President of LIA Singapore, expressed confidence in the industry's resilience. 

Member companies are addressing protection gaps and supporting financially active individuals, with initiatives such as a Basic Financial Planning Guide launched in October. 

LIA Singapore's Sustainability Sub-committee will continue to drive sustainability initiatives in collaboration with member companies.