SINGAPORE – Measly increase in life insurance sales

According to the Life Insurance Association (LIA) Singapore, the industry achieved a total of $1,608.1 million in weighted new business premiums for the first nine months of 2012, representing a 10 percent improvement over the corresponding period in 2011. 

The overall performance was driven by the positive quarter-to-quarter growth in the sales of regular premium products. The first three quarters hit $1,160.8 million, registering a 20 percent growth over the same period last year. 

Single premium business, dipped 10 percent at $447.3 million. Of this amount, 14 percent comprised CPF-funded sales. 

Mr. Tan Hak Leh, president of the LIA said: “Overall, we have seen consistent growth since the start of 2012. We naturally take a restrain view in our target estimates for the next quarter in light of the forces of the economic climate.” 

The total sum assured for new business stood at $56.9 billion for the first nine months of 2012, a 16 percent increase over the same period last year. 

As of 30 September 2012, a total of 96 percent of new sales were contributed by insurers holding “normal” licenses. The “Defined Market Segments” (DMS) insurers, represented by five companies, contributed the remaining four percent. 

Up to the end of September 2012, the life insurance industry paid out a total of $4.51 billion to policyholders and beneficiaries. 

Of this, $313 million was in respect of death, critical illness or disability claims, whilst the remaining $4.20 billion was for policies that matured. 

TAN HAK LEH, PRESIDENT OF THE LIA