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According to figures supplied by the Life Insurance Association, Singapore, the country's life insurance sector generated S$3.87 billion ($2.79 billion) in weighted new business premiums for the first nine months of this year, a decrease of 5.9% from the same period in 2021. (LIA Singapore).
Following is a breakdown of new business in the first three quarters of the year by single-premium and annual-premium types:
Personal health and life insurance
scaled basis
YTD 3Q2022
YTD3Q2021
Annual change
solitary premium
S$1,955.2 m
S$ 2,034.3m
-3.9%
an annual fee
S$1,910.3 m
S$2,074.4 m
-7.8%
Total
S$ 3,865.7m
S$4,106.7m
-5.9%
LIA Singapore is the source.
From January to September 2022, weighted new business premiums from annual-premium policies totaled S$1.91 billion, down from S$2.1 billion during the same time period in 2021.
In the first three quarters of the year, weighted premiums from single-premium plans fell by 3.9% year over year. The reduction is mostly related to the volatility in the world equities markets, which had an impact on investment-linked programs, and the rising interest rates, which increased competition between shorter-term endowment goods and other financial products on the market.
The overall demand for life insurance products was impacted in the third quarter of 2022 by global geopolitical instability, a turbulent and unpredictable macroeconomic climate, ongoing inflationary pressures, and growing living expenses, according to Mr. Khor Hock Seng, President of LIA Singapore. Despite this, Singaporeans continue to seek protection because they understand the value of insurance in their financial plan.
"Our first focus right now is to support Singaporeans as they review their financial and long-term protection needs, particularly in these trying economic times. Recently, a consolidated picture of insurance policies was added to the Singapore Financial Data Exchange (SGFinDex), which would allow us to assist clients with financial planning in a wider way.
Payments and claims
The life insurance sector paid out S$8.71 billion to policyholders and beneficiaries between January and September 2022, a 14.8% rise over the same period the previous year.
S$7.5 billion of this sum went on policies that reached maturity. Death, complete and permanent disability, and critical illness claims accounted for the remaining S$1.14 billion.
thinking forward
In 2023, Mr. Khor stated, "We anticipate that the business environment for the life insurance industry will remain difficult in the short to medium term, particularly given that Singapore's economy is anticipated to grow more slowly in 2023 amid challenges in the external environment. Inflationary pressures and ongoing market volatility are other worries. Despite these, we have faith in Singapore's life insurance sector's resiliency and will continue to make wise investments in innovation for the region's customers.
