Singapore’s life insurance sector has reported an increase in new business premiums for the first nine months of 2024, according to recent figures released by the Life Insurance Association Singapore (LIA Singapore).
From January through September, weighted new business premiums reached S$4.3 billion, representing a 23.5% year-over-year growth. The increase reflects steady demand as more consumers sought financial protection amid ongoing economic uncertainties.
Despite global economic challenges, including inflation and geopolitical concerns, the sector posted an 18.2% increase in total new business premiums during Q3 2024 compared to the same period last year. Group life and health in-force premiums, meanwhile, showed continued growth, recording a 13% year-over-year increase to reach S$2.5 billion.
Annual premium policies saw a notable rise, with a 24.8% increase in weighted premiums compared to the same period in 2023. These policies generated a total of S$3.0 billion in new premiums by the end of Q3 2024.
Single-premium policies also grew, with a 20.6% rise over last year, totalling S$1.3 billion in weighted new premiums.
Financial adviser representatives, both independent and affiliated with insurers, contributed significantly to the sum assured growth, with S$43.3 billion in new policies, making up 39.1% of total assured sums.
Tied representatives added S$37.0 billion, accounting for 33.5%.
Overall, the industry’s total sum assured reached S$110.6 billion by the end of Q3, marking a 4.8% increase over last year.
Non-participating (non-par) and investment-linked (linked) policies saw higher demand in Q3 2024, contributing 38% and 37% of weighted new business premiums, respectively.
Total weighted premiums for non-par policies rose to S$1.64 billion, up from S$1.31 billion year-over-year, while linked policies reached S$1.58 billion compared to S$1.08 billion in 2023.
Integrated shield plans (IPs) continue to be a key health insurance option for Singaporeans and permanent residents.
Through Q3, nearly 112,000 individuals signed up for IPs, bringing the total covered lives to 2.96 million, or about 71% of Singapore’s resident population.
New premiums for individual health insurance, including IPs, reached S$381.2 million in Q3, an 18.7% increase from the previous year.
IPs and related riders accounted for 87% of this premium total, with other medical plans comprising the remaining 13%.
In the first three quarters of 2024, Singapore’s life insurance sector paid S$14.8 billion in claims to policyholders and beneficiaries, marking a 46% increase from the previous year.
Maturing policies accounted for the majority, with payouts totalling S$13.4 billion, while S$1.4 billion was disbursed for death, critical illness, and disability claims across more than 16,000 policies.
LIA Singapore’s report also highlighted the distribution of new business across various channels.
Bank representatives held the largest share of weighted premiums at 33.1%, while tied representatives led in the number of policies sold, accounting for 37.1%.
Financial advisers contributed 32.7% of premiums and 33.4% of policies, while online channels and other direct distribution options made up smaller percentages.
The life insurance sector’s workforce saw a 2% decrease year-over-year, with 9,578 employees as of September 30. Despite the decrease, insurers continue to recruit, especially to support digital initiatives. Additionally, 13,149 representatives held exclusive contracts with companies operating a tied-agency model.
Commenting on the trends, LIA Singapore president Dennis Tan noted that while challenges persist, the industry’s growth underscores consumers’ commitment to building financial resilience.
“Despite ongoing challenges, Singaporeans continue to take a long-term view as they continue to invest in addressing their protection needs and increase their financial resilience. It is heartening to note and speaks to the strong sense of self-reliance in Singapore,” he said.
