SINGAPORE: Life insurance saw a sizable uptick in the first quarter of the year, said the Life Insurance Association of Singapore (LIA) on Tuesday (May 14).
Weighted new business premiums went up by S$1.37 billion from January until March, marking a 32.2 per cent year-on-year rise. This is the best the sector has done since the Covid-19 pandemic began at the beginning of 2020.
“The life insurance industry is starting the year positively by focusing and achieving progress in narrowing our nation’s protection gap as we grow the sector as a whole,” said Mr Dennis Tan, the President of LIA Singapore.
“While the concerns about the potential impact of the macroeconomic environment remain pertinent, the industry continues to be agile to swiftly respond to consumer needs in Singapore.
Our priority remains in helping the population meet their financial and protection needs,” he added.
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Due to stronger macroeconomic stability and the country’s economic recovery, single premium policies also increased by 46.4 per cent in weighted premiums, for a total of S$500.4 million.
Annual premium policies also grew by 25.2 per cent, for S$866.5 million in weighted premiums. LIA noted that this reflects a “sustained trend where meeting protection needs is being prioritised in Singapore.”
Sales of non-participating products also rose by 42 per cent during this quarter.
LIA added that Integrated Shield Plans are still a critical component of health insurance coverage, with around 35,000 more Singaporeans and permanent residents covered by these plans by the end of the quarter.
Nearly 3 million people, or about 70 per cent of people living in Singapore, are covered by this type of plan on top of their MediShield Life.
LIA noted that medical inflation has remained a challenge in Singapore, requiring “the joint efforts of all parties within the healthcare ecosystem to actively manage” the issue.
“The life insurance industry is supportive of increased transparency across the entire healthcare system, including clear value and quality of care metrics.
The industry remains committed to working in close collaboration with regulators and the medical industry through the Multilateral Healthcare Insurance Committee to address this challenge,” LIA added.
Mr Tan said that LIA remains “cautiously optimistic and adaptable” in the light of recent forecasts by the Monetary Authority of Singapore indicating stronger growth in the finance and insurance sector. /TISG
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