Singapore (THE BUSINESS TIMES) - Singapore's life insurance industry saw $1.25 billion in weighted new business premiums for the first quarter of 2021, up 29 per cent from the year-ago quarter, which was prior to the Covid-19 circuit breaker measures.
This came amid a significant growth in the number of policies purchased online as well as a surge in the uptake of single-premium products, said the Life Insurance Association (LIA) Singapore said on Tuesday (May 11).
"While the pandemic continues to pose challenges for our customers and organisations, it also prompted many to reconsider and better plan for their long-term financial and healthcare needs," said LIA president Khor Hock Seng.
New policies bought online grew to 88,565 in the first quarter of 2021 compared with just 4,662 the year before, which LIA attributed to member companies digitising their processes from end to end.
The association also noted an 85 per cent quarter-on-quarter increase in weighted premiums for single-premium products to $541.6 million from $293.4 million the year before.
Out of the total sales of single-premium policies, single-premium par and non-par products comprised 80 per cent, while single-premium linked products made up the remaining 20 per cent.
Meanwhile, 10 per cent of the overall single-premium policy sales volumes came from Central Provident Fund Investment Scheme-included products, and cash-funded products accounted for 90 per cent.
Annual premium products also rose, by 5 per cent year on year to $708.2 million in total weighted annual premiums from $672.4 million previously.
As at end-March 2021, 20,000 more Singaporeans and permanent residents were covered by Integrated Shield plans (IPs) and riders, which provide coverage on top of MediShield Life.
Total new business premiums for individual health insurance amounted to $96.3 million, with IPs and IP rider premiums accounting for $81.3 million or 84 per cent, and the other 16 per cent, or $15 million, comprising other medical plans and riders.
The uptake of retirement policies, however, dipped 2 per cent in terms of policy count compared with the same period last year. They totalled $97.8 million in weighted premiums for the quarter, which accounted for approximately 8 per cent of total weighted premiums in the first quarter of 2021.
For the January to March period, employment in the life industry remained stable compared with the corresponding period last year, with 40 new hires. This brings the Singapore life insurance industry's workforce to 8,708 employees as at end-March.
Over the same period, 14,945 representatives held exclusive contracts with companies that operate a tied-agency force.
Mr Khor said LIA will put initial focus on capacity building for the insurance industry as a strategic partner of Singapore's Green Finance Industry Taskforce.
"With the digitalisation of insurance well under way, our imperative is to enable our workforce to adapt to these new digital tools. Working through the LIA as an industry, the Institute of Banking and Finance has customised training for our staff in growth mindset, design thinking and innovation to equip them to embrace the evolving nature of their jobs," he added.
