The life insurance industry in Singapore has recorded S$3bn (£1.7bn, $2.2bn, €2bn) in new business premiums between January and September 2019 (YTD 2019).
That is a 4% fall compared with the same period in 2018.
The Life Insurance Association (LIA) in the city-state did not seem too worried about the situation as it said figures are in line with the nation’s economic performance.
But the total sum assured for new business increased by S$1.3bn (1%) year-on-year, amounting to S$103.1bn.
Growing customer base
Annual premium products reported a 4% rise compared to the same period last year, totalling to S$2.1bn.
The LIA said that this is attributed to the increase in uptake of participating plans.
Single premiums products, however, suffered as they declined by 20% on a year-on-year basis.
For the YTD 2019, single premiums made up S$889.2m.
Retirement policies proved popular in the Lion City, with 38,622 purchases, reporting a growth of 14,012 policies from the first three quarters of 2018, and amounting to S$356m.
Additionally, more Singaporeans and permanent residents have bought health insurance with an increase of 53,000 clients from the same period last year.
People’s evolving needs
“The ongoing economic volatility has inevitably impacted the first three quarters’ performance for the life insurance industry,” said Khor Hock Seng, president of LIA Singapore.
“However, the association and member companies remain steadfast in our efforts and commitment to provide better protection for customers – reflected by the increased total sum assured.
“This is especially crucial at a time when there is a growing cohort in the population of older people and increasing rates of chronic medical conditions among both the young and old.”