As Singapore's economy shows signs of robust growth, its life insurance sector is experiencing a parallel surge in performance. In the first half of 2024, the industry recorded S$2.86 billion in new business weighted premiums, marking a significant 30.4% increase from the previous year.
The Life Insurance Association, Singapore (LIA Singapore) detailed that both single and annual premium policies have seen increased demand. Specifically, single-premium policies achieved S$918 million, and annual premiums reached S$1.94 billion in the first six months of the year.
The sector reported growth in other key areas: group life and health insurance premiums rose by 11% to S$2.4 billion in the second quarter, and individual health insurance premiums increased by 7.1%, totaling S$220.7 million for the half-year.
Insurance product sales were predominantly led by tied representatives, bank representatives, and financial advisers, accounting for significant portions of both weighted premiums and the number of policies. Online direct channels and non-intermediated sales also played a role, indicating a shift towards diverse purchasing preferences.
The total sum assured by the industry reached S$70.2 billion, a 6.7% increase, with financial advisers contributing S$27.5 billion. The industry also saw a substantial rise in claims payouts, disbursing $10.96 billion in the first half of 2024, an 82.8% increase from the previous year.
“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… We remain committed to collaborating with government agencies and the medical fraternity to ensure the continued accessibility of medically necessary treatments,” LIA Singapore president Dennis Tan said.
