Singapore's life industry sales sink 13% in H1

Movement restrictions led to a 25% drop in annual premium business.

Singapore’s life insurance industry posted a 13% decline in weighted new business premiums for H1 2020 to $1.21b (S$1.66b), according to data published by the country’s Life Insurance Association (LIA).

Strict social distancing measures brought about by the Circuit Breaker and Phase 1 periods led to the 25% drop in annual premium business to S$1.04b from S$1.4b a year earlier.

Per distribution channel, tiered representatives comprised 36.1% or S$600m of total weighted premiums, followed by bank representatives (30.3%), FA representatives (26.7%), and online direct channels (2.6%).

Total sum assured inched up 1% to S$65.6m in June from $64.9m a year ago.

New business premiums for individual health slipped 22% to S$173m from $221.4m in Q2 2019. IPs and IP rider premiums accounted for 87% ($149.9m) and the remaining 13% ($23.1.m) comprised other medical plans and riders. IPs and riders covered 51,000 more Singaporeans and Permanent Residents, bringing the total to 2.81 million as of end-June.

Employment in the life industry rose 4% compared to the corresponding period in 2019, with 368 net new hires. This brings the life insurance industry’s workforce to 8,650 employees as of end-June, with new hires primarily being attributed to the expansion of distribution and sales teams, as well as project and product management roles.