singapore insurance sales exceed two bn

By Mark Battersby, 6 Feb 13

Sales of insurance products in Singapore grew 8% over the last year to the end of December compared to 2011, the Life Insurance Association of Singapore has revealed.

The final quarter results, which pushed total sales over the full year to S$2.18bn, show that growth was driven by annual premiums of S$1.59bn, up an impressive 18% on the previous four quarter total.

Single premiums, by contrast fell 11% to S$586.2m, which was attributed to weak market sentiment and a more subdued economy.

The weighted figure is calculated by adding 10% of the Single Premium Index (SPI) to the Annual Premium Index (API), with adjustment for premium payment terms of less than 10 years.

Annual premiums rose a healthy 8%, from S$408.6m in the third quarter to S$441.4m in the fourth quarter, while single premiums declined by 9.6%, from S$153.7m to S$138.9m.

Tied agents continued to be the main channel of distribution for new business, contributing 59% of new business policies and 46% of new business funds invested in the four quarters to the end of December 2012.

Financial advisers handled 16% of sales, up 2% on the previous quarter figures, and in terms of policies accounted for 10% of the total.
Bank sales, while accounting for 35% of new weighted premiums, was only up 1% on the previous year, indicating that the upward trend had slowed.

In a statement, Tan Hak Leh, president of the LIA, said: “ Outlook for the life insurance industry in 2013 is that of tempered optimism, given that the Singapore economy is likely to grow at a slower pace.”