S’pore’s life industry dips 3.9% YoY in weighted new business premiums 2023

Fourth quarter 2023 saw an increase in the uptake of both annual and single-premium products.

Singapore’s life insurance industry saw its weighted new business premiums grow 14.4% year-on-year (YoY) for the fourth quarter (Q4) 2023 compared to the same period in 2022. The total weighted new business premiums achieved for year-to-date (YTD) 2023 amounted to S$4.90b, with a 4.0% increase in non-par funds, Life Insurance Association of Singapore (LIA) data revealed.

Although the total weighted new business premiums for 2023 dipped by 3.9% compared to the previous year due to a decrease in single premium business, there was an overall increase in demand for regular premium non-par products like Term and Health Insurance plans. 

Despite challenges in the macro-environment, Singapore’s life insurance industry continues to make progress in narrowing the nation’s protection gap, with a year-on-year increase of 1.9% in total sum assured in YTD 4Q 2023.

The fourth quarter of 2023 witnessed an increase in the uptake of both annual and single-premium products. Annual premium products recorded a 15.5% increase in total weighted new business premiums compared to Q4 2022, while single premium products saw a 12.2% increase.

The demand for Integrated Shield Plans (IPs) remained robust, with total weighted new business premiums for Individual Health Insurance experiencing a 14.9% increase in Q4 2023 compared to the same period in 2022.

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In 2023, the life insurance industry paid out S$13.58b to policyholders and beneficiaries, marking a 16.2% increase compared to the previous year. 

Employment in the industry also increased by 3.5%, with the workforce reaching 9,737 employees by the end of 2023.

Looking forward, LIA Singapore remains committed to addressing the community's protection and financial needs through product innovations and effective business processes.

“Cost of living is a key concern amongst many in Singapore, and the life insurance industry is committed to finding ways to support members of the community address their protection and financial needs,” said Dennis Tan, President of LIA, in a press release.

“We will do this through innovations in product design and more effective business processes, amongst others.  We will also continue to take a long-term view and pursue initiatives to ensure the well-being of Singapore’s population and to support the nation’s net-zero transition goals.  Just as we seek to protect the life and health of people, we are equally serious about protecting the earth and our collective future.” Tan concluded.