The Life Insurance Association Singapore (LIA Singapore) attributed the strong growth in the second quarter to an overall increase in single premium non-linked products over single premium linked products, as consumers seek more risk-averse options amidst the current market volatility.
Khoo Kah Siang, president of LIA Singapore, said, “We are encouraged by the strong first half results which reflects the industry’s ability to adapt and introduce innovative products for policyholders in today’s fast-changing macro-economic environment.
“The total sum assured for new business rose strongly by 15%, totalling S$50.8bn (£29bn, $37.7bn, €34bn) as compared to the same period in 2015 as life insurers help individuals better meet their protection needs.”
Tied representatives sold 58% of all policies in 1H16, while bank representatives and financial advisers each sold 13%.
The remaining 16% of policies were sold by ‘other’ distributers not included in the above channels.
As of 30 June 2016, Singapore’s life insurance industry paid out just under S$3bn to policy holders and beneficiaries.
The vast majority, S$2.56bn, was for policies that reached maturity. The remaining S$429m was for death, critical illness or disability claims, representing a 15% increase compared with 1H15.
At the end March 2016, the life insurance industry was managing assets of approximately S$163.8bn, up 4% compared with a year ago.
Assets of non-investment linked business accounted for S$136.5bn, while the remaining S$27.3bn were assets held for investment-linked business.
LIA Singapore expects the life insurance industry to be resilient amidst continuing economic challenges and uncertainties faced by major economies and a sluggish domestic economy as individuals should be seeking to ensure that they are adequately protected and remain protected as a priority in managing their finances.