The life insurance industry in Singapore reported a 20% on-year increase in new business premiums for the first half of this year to reach a total of £1.15bn (S$2.02bn).
The performance was boosted by strong sales of investment-linked plans and a positive attitude towards protection and retirement needs.
“This year’s midpoint is already much higher than last year’s midpoint, so if momentum continues, we will cross S$4bn for sure,” Patrick Teow, head of the Life Insurance Association (LIA) Singapore said in a press conference.
Compared to a year ago, the year-to-date total sum assured, which includes individual life and health insurance rose 19% to S$66.3bn in June 2018 from S$55.9bn in June 2017, pointing to an increase in protection.
There has been a slight shift in customers’ interest away from participating products, to both non-participating products and investment-linked products, attributed to insurers’ new product launches as well as improving economic conditions.
More individuals took action to provide for their golden years in the first half of this year. A total of 14,505 retirement insurance policies – which are designed to provide regular payouts to policyholders – were sold.
“We are happy that protection for people is increasing and that tells us that people are taking a serious look at their financial health,” said Teow.
Key actions for the industry to help individuals enhance the adequacy of their insurance protection will be released alongside a qualitative protection study later this year.