The life insurance industry in the Lion City achieved double digit growth for the first nine months of this year on the back of a strong uptake across all product types.
Total weighted new business premiums for the period January to September rose by 18% year on year to S$2.748 billion (US$2.018 billion), according to figures released yesterday by the Life Insurance Association, Singapore (LIA Singapore).
There was a strong 14% increase in sum assured for new business compared to the corresponding period in 2016, totalling S$92.5 billion. This is attributed to an increase in uptake across both single and annual premium products.
Compared to the same period in 2016, the industry recorded:
a) a 23% increase to S$900.7 million in weighted single premiums:
- Single premium par and non-par products comprised 75%, the balance 25% were single premium linked products
b) a 15% increase to S$1,847.0 million in weighted annual premiums
c) a 27% increase to $147 million in total weighted premiums for retirement products.
Mr Patrick Teow, President of LIA Singapore, said: “More Singaporeans are recognising the value of financial planning and insurance for their future, and this is reflected in yet another quarter of strong growth for the life insurance industry. Especially against the backdrop of Singapore’s rapidly greying population, we are heartened that Singaporeans are actively taking up insurance policies to secure steady income streams in their retirement years. Ensuring sustainable access to affordable healthcare is another key area of focus as our population continues to age.”
From January to September 2017, the life insurance industry paid out S$4.07 billion to policyholders and beneficiaries. Of this amount, S$3.41 billion was for policies that matured. The remaining S$657 million was for death, critical illness or disability claims.