How did Singapore’s life insurance industry perform in 2021?
Singapore’s life insurance industry achieved S$5.38 billion in weighted new business premiums from January to December 2021, a 23% year-on-year growth compared to 2020.
How much single premium insurance products were sold in Singapore?
Single-premium products recorded a 41% year-on-year increase in weighted premiums, amounting to S$2.58 billion for YTD 4Q2021.
This stellar performance is attributed to the high volume of new business secured during the first half of 2021, riding on the recovery of Singapore’s economy after a year of tighter COVID-19 restrictions in 2020.
Single-premium par and non-par products comprised 83% of all single-premium purchases; single-premium linked products made up the remaining 17%.
CPFIS-included products comprised 7%, and cash-funded products accounted for 93%.
How much annual premium insurance products were sold in Singapore?
Purchase of annual premium products rose by 10%, amounting to S$2.80 billion in weighted annual premiums for YTD 4Q2021.
This was achieved despite a slight dip of 6% in growth for 4Q2021 compared to the corresponding quarter in 2020.
How many insurance policies were purchased online in Singapore?
The number of new policies purchased online recorded a two-fold increase to 591,282 in YTD 4Q2021 compared to 206,679 in 2020.
These are purchases transacted online by customers without financial advisory. New micro-insurance products and complimentary products covering the side effects of COVID-19 vaccination contributed to the large increases in the policy count observed.
These online purchases totalled S$189m in weighted premium for the year, recording a 6% improvement over the last year.
While the number of new insurance policies purchased online increased two-fold, accounting for 32.2% by distribution channel breakdown, the online direct channel’s share was 3.5% in terms of total weighted premium.
How popular were insurance par products, non-par products and investment-linked products?
Par products accounted for 43% of new sales while non-par products accounted for 31%. Investment-linked products made up the remaining 26%.
Word from the President of Life Insurance Association, Singapore
Mr Khor Hock Seng, President, LIA Singapore, said, “In 2022, life insurers will continue to pursue their digitalisation plans to deliver a better customer experience from product purchase to claims submission.”
“Sustainability will remain a priority and life insurers are working closely with all stakeholders to build up a multi-dimensional capacity in ESG for green investments and life insurance products to become commonplace over the next decade.”
“Workforce transformation is crucial to achieving these two key pillars and life insurers will continue to invest in upskilling employees as well as attracting talent in the digital and sustainability space.”