The Life Insurance Association of Singapore (LIA Singapore) today announced a set of industry results for the period January to September 2020 showing steady YoY.
Overall, the industry recorded a total of S$2.99bn in weighted new business premiums for YTD 3Q2020, a decline of two per cent from the same period in 2019.
However, there was a notable 90.6% increase in new business premiums recorded in 3Q2020 compared to 2Q2020, the latter encompassing both ‘Circuit Breaker' and ‘Phase 1' periods. Total weighted premiums recorded in the third quarter reached $1,324.6m, a significant $629.5m more than the $695.1m recorded in the second quarter.
Life insurers are continuing to accelerate digitalisation efforts to future-proof our businesses."
Sales of single premium products continued to perform well, recording a 36% YoY increase in weighted premiums amounting to S$1.21bn in total for YTD 3Q2020. The LIA said this is a continuation of the upward trend of such products, which was first noted in 2Q2020.
Their popularity with consumers can be attributed to short-term single premium products being simple to understand, requiring no medical underwriting, as well as the current low interest rate environment.
Despite the conservative economic outlook, the LIA said the life insurance industry will continue to accelerate its digital transformation efforts and expand and upskill the workforce of the future
Khor Hock Seng, President, LIA Singapore, said, "Life insurers are continuing to accelerate digitalisation efforts to future-proof our businesses. Workforce transformation remains a priority for life insurers to ensure our employees receive the training needed to utilise next-generation technologies such as artificial intelligence, data analytics, and machine learning; leveraging their benefits to improve customer experience and product innovation."