Singapore’s life insurance industry crossed a significant milestone in 2017 with total weighted new business premiums reaching S$4.8bn for the year.
The results are the highest recorded to date, and mark a 24% increase compared to the same period in 2016 affirms the industry’s strong progress over the past 12 months. All product types reported double-digit growth for 2017.
There was also strong double-digit growth across both single and annual premium products within the period.
The results, reported by the Life Insurance Association (LIA) Singapore, reveal a remarkable 91% jump in the uptake of single-premium products in the last quarter of the year (compared to the same period in 2016). The total S$563.2m recorded within the three months account for 38% of the entire year’s figure.
Increased uptake of protection-focused policies
The industry continues to make significant progress in supporting individuals in Singapore better meet their protection needs. Total sum assured for new business rose strongly by 12 per cent year-on-year, totaling S$130.5bn, continuing an upward trend since 2014.
Over the course of 2017 the life insurance industry paid out S$5.82 billion to policyholders and beneficiaries. Of this amount, S$4.93bn was for policies that matured. The remaining S$884 million was for death, critical illness, or disability claims.
Additionally, in keeping with Singapore’s focus on retirement planning, the industry saw an uptake of 25,775 policies designed to provide regular payouts to policyholders during retirement years. This represents a 27% increase on 2016. Such plans account for approximately five per cent of the total weighted premiums to the end of 2017.