Singapore: Life sector sees 3% growth in new business premiums in 2020
Source: Asia Insurance Review | Mar 2021
Singapore’s life insurance industry recorded a total of S$4.4bn ($3.3bn) in weighted new business premiums in 2020, signalling a 3% growth compared to 2019, said the Life Insurance Association, Singapore (LIA Singapore) in a statement.
There was a rebound in the second half of the year after the initial fallout from COVID-19 which affected policy uptake most significantly in the second quarter of the year.
The uptake of new policies purchased online saw a significant increase to 206,679 in 2020 compared to 9,971 in 2019. Most of the policies purchased online were single premium products such as short-term non-par endowment plans, par whole life plans, and universal life plans.
Total new business premiums for individual health insurance for 2020 amounted to S$377.7m. Overall, IPs and IP rider premiums accounted for 88% (S$331.2m) and the remaining 12% (S$46.5m) comprised of other medical plans and riders.
“In 2021, life insurers will continue rallying behind the government’s efforts to bring COVID-19 under control through mass vaccinations. All seven Integrated Shield Plan insurers have extended hospitalisation coverage to policyholders experiencing complications resulting from regulator-approved vaccines,” said LIA president Khor Hock Seng. A