Singapore's life insurance industry achieved a significant milestone in the first half of 2024, posting its strongest performance since the onset of the pandemic.
Life Insurance Association (LIA) Singapore reported S$2.77 billion in total weighted new business premiums from January to June, reflecting a robust 26.6% increase compared to the same period last year.
The uptick in both single-premium and annual premium policies highlights the continued prioritization of financial security among Singaporeans. Single-premium policies experienced a notable 32.9% increase in weighted premiums, reaching S$918 million, while annual premium policies grew by 23.7%, totaling S$1.85 billion.
As Singapore's economy outperformed expectations in the second quarter of 2024, the life insurance sector capitalized on the positive macroeconomic environment. Group Life and Health in-force premiums also showed steady growth, increasing by 11% in the second quarter compared to the same period in 2023, bringing the total to S$2.4 billion. Individual health insurance premiums rose by 7.1% during the first half of the year.
Financial Advisers (FA) representatives played a key role in this growth, securing S$27.5 billion in sum assured, representing 39.1% of the total amount assured in the first half of 2024. Tied representatives followed with S$24.3 billion, contributing 34.7% of the total.
Integrated Shield Plans (IPs) continued to be a vital part of health insurance coverage, with approximately 71,000 Singaporeans and Permanent Residents opting for new IPs by June 30, 2024. Overall, IPs now protect about 2.9 million lives, covering 71% of Singapore's population.
Between January and June 2024, the life insurance industry paid out S$10.96 billion to policyholders and beneficiaries, marking an 82.8% increase from the same period last year. Of this, S$10.04 billion was for policies that matured, while S$927 million was paid out for death, critical illness, or disability claims across more than 10,600 policies.
Looking forward, LIA Singapore president Dennis Tan emphasized the industry's focus on managing healthcare inflation in collaboration with other stakeholders.
“As Singapore’s economy continues to pick up, with GDP forecasted to come in closer to its potential rate 2 to 3% for this year, the life insurance industry remains cognisant and agile to seize opportunities to grow as we prioritise efforts to meet the protection needs in Singapore,” Tan said.
“Healthcare inflation remains a top-of-mind challenge, as medical costs are projected to rise by 10.7% this year… As an industry, we remain committed to collaborating with government agencies and the medical fraternity to ensure the continued accessibility of medically necessary treatments. We believe that, together, we can ensure the continued accessibility of quality healthcare in Singapore, while keeping healthcare costs and premiums sustainable.”
