1H2024: Singapore life insurance sector’ new business premiums up 30% y-o-y to S$2.86 bn

Singapore’s life insurance industry has posted its most successful half-year performance since the pandemic began, recording a substantial growth in new business premiums for the first half of 2024 (1H 2024).

The life sector achieved S$2.86 billion in total weighted new business premiums, a 30.4% increase compared to the same period last year, according to the Life Insurance Association, Singapore (LIA Singapore).

The increase in weighted new business premiums aligns with a more positive macroeconomic environment as Singapore’s economy continued to expand, recording higher growth than forecasted in the second quarter of 20243. Demand for both single and annual premium policies increased in Q2 2024, reflecting the continued prioritisation of savings and protection needs.

Focus on protection: Increased uptake of both annual and single premium products in Q2

The industry saw a boost in demand for both single-premium and annual premium policies in the second quarter.

Single-premium policies increased 32.9% in weighted premiums compared to the same period last year, amounting to S$918.0 million in total for 1H 2024. Annual premium policies also saw an increase of 29.3% compared to the same period last year, amounting to S$1.94 billion in 1H 2024.

Financial Advisers (FA) Representatives led the charge in achieving S$27.5 billion sum assured in the first half of 2024, accounting for 39.1% – a notable proportion – of the total amount of sum assured for 1H 2024.

Tied Representatives were closely behind, securing another S$24.3 billion in sum assured, accounting for 34.7% of the total amount sum assured in 1H 2024. The industry recorded a total of S$70.2 billion in total sum assured during 1H 2024 – a growth of 6.7% over the same period last year.

Claims payouts

Between 1 January 2024 and 30 June 2024, the life insurance industry paid out S$10.96 billion to policyholders and beneficiaries, a 82.8% increase compared to the same period last year. Of this amount, S$10.04 billion was for policies that matured. The remaining S$927 million was for death, critical illness or disability claims for more than 10,600 policies.

Future outlook

Mr Dennis Tan, President, LIA Singapore, said: “As Singapore’s economy continues to pick up, with GDP forecasted to come in closer to its potential rate 2 to 3% for this year, the life insurance industry remains cognisant and agile to seize opportunities to grow as we prioritise efforts to meet the protection needs in Singapore.

Healthcare inflation remains a top-of-mind challenge, as medical costs are projected to rise by 10.7% this year, attributable to multiple factors such as the rising costs of medical treatments and medical advancements, possible over-consumption and over-prescription of medical services, an ageing population to care for, as well as increased staffing costs amid a tight healthcare talent pool.

As an industry, we remain committed to collaborating with government agencies and the medical fraternity to ensure the continued accessibility of medically necessary treatments. We believe that, together, we can ensure the continued accessibility of quality healthcare in Singapore, while keeping healthcare costs and premiums sustainable.”

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