The first quarter of the year showed a 5% and 6% increase in weighted annual premiums and weighted single premiums, respectively, for life insurance, reported the Life Insurance Association Singapore (LIA Singapore).
Overall, the life insurance industry achieved a total of S$682.1 million (US$498.05 million) in weighted new business premiums this quarter, a 5% increase compared to the same period in 2015.
“We are encouraged by the first quarter results which continued from the strong growth seen in 2015. The life insurers have stepped up to the change in regulations and market demand well, and will continue to innovate to deliver solutions and services that meet the needs of consumers,” said Dr Khoo Kah Siang, President of LIA Singapore. He also noted that the industry has shown an encouraging response to new and updated plans following regulatory changes, specifically the Direct Purchase Insurance (DPI) products and Integrated Shield Plans (IPs).
Direct Purchase Insurance shows steady growth
In comparison to Q1 of 2015, the total sum of new business rose by 11%, to a total of $22.1 billion. DPI products also saw a steady growth, drawing $730,000 in weighted premiums since it launched in April 2015. To date, 855 products have been purchased via DPI, the majority of which were term policies.
Weighted annual premiums increased to $466.2 million, while weighted single premiums went up to $215.9 million. Of the latter, single premium participating and non-participating products comprised 79%, with Central Providence Fund (CPF) Investment Scheme products taking up 13%.
LIA Singapore also reports a stable growth in IPs sales, since 2015, with over 60% of Singaporean residents covered under the plan. Furthermore, the life insurance industry itself has grown in size, with over 6,000 new corporate staff being employed by member companies of LIA Singapore, and a further 14,000 representatives holding exclusive contracts with companies that operate a tied agency force.