Singapore life insurance industry records 23% growth in 2021

New business premiums reached $3.99b from January to December last year.

The Life Insurance Association of Singapore (LIA Singapore) has reported a 23% increase in new business premiums in the life insurance industry amounting to $3.99b (S$5.38) for 2021.

Single premium sales recorded a 41% year-on-year (YoY) increase in weighted premiums amounting to $1.92b (S$2.58b) for the year-to-date (YTD) fourth quarter (Q4) of 2021. LIA Singapore attributed the increase to the high volume of new business secured during the first half of 2021, riding on the recovery of Singapore’s economy, a year after tight COVID-19 restrictions in 2020.

Single-premium par and non-par products comprised 83% of all single-premium purchases whilst single-premium linked products made up the remaining 17%. Meanwhile, CPFIS-included products comprised 7% and cash-funded products accounted for 93%.

Purchase of annual premium products went up by 10%, amounting to $2.08b (S$2.80b) in weighted annual premiums for YTD Q4 2021. This was achieved despite a slight dip of 6% in growth for the same period compared to the corresponding quarter in 2020.

Meanwhile, total in-force annual premiums for the group insurance business rose by 20% compared to the same period a year ago, totalling $1.34b (S$1.81b).

New policies purchased online also saw a two-fold increase to 591,282 in YTD Q4 2021 compared to 206,679 in 2020. These are purchases transacted online by customers without financial advisory. LIA Singapore said that new micro-insurance products and complementary products covering the side effects of COVID-19 vaccination contributed to the large increases in the policy count observed. These online purchases totalled $140.30m (S$189m) in weighted premium for the year, recording a 6% improvement over the last year.

Integrated Shield Plans

LIA Singapore noted that the Integrated Shield Plans (IPs) remained the major insurance product for Singaporeans. Nearly 32,000 more Singaporeans and Permanent Residents were covered by IPs and riders as of 31 December 2021. 2.85 million, or approximately 71% of Singapore residents, are protected by IPs and riders which provide coverage on top of MediShield Life.

Total new business premiums for health insurance for Q4 2021 amounted to 267.39m (S$360.2m) Overall, IPs and IP rider premiums accounted for 83% (or S$298.6m) and the remaining 17% (S$61.6m) comprised of other medical plans and riders.

According to Khor Hock Seng, President of LIA Singapore, in 2022 life insurers will continue to pursue their digitalisation plans to deliver a better customer experience from product purchase to claims submission.

“Sustainability will remain a priority and life insurers are working closely with all stakeholders to build up a multi-dimensional capacity in ESG for green investments and life insurance products to become commonplace over the next decade. Workforce transformation is crucial to achieving these two key pillars and life insurers will continue to invest in upskilling employees as well as attracting talent in the digital and sustainability space,” Khor Hock Seng said.