Singapore: Life sees 20% sales growth

Life insurers in Singapore posted a 20 percent jump in new business sales in the second quarter compared to a year ago, rising to SGD845 million, according to numbers from the Life Insurance Association Singapore (LIA).

LIA attributed the strong growth to the growing awareness among Singaporeans about the importance of medical insurance. This has helped to drive demand for Integrated Shield Plans and their riders, in the three months ending June.

“This came after the introduction of MediShield Life on Nov 1 last year,” said Khoo Kah Siang, president of LIA, in a Channel News Asia report. “The uptake in terms of the Integrated Plans (IP) and riders … in the second quarter of this year shows that the public at large now have a better understanding of how the Integrated Shield Plan and riders integrate and work together with MediShield Life.

New business premiums of non-investment-linked single premium products – including endowment and whole life policies, as well as Integrated Shield Plans and IP riders – more than doubled in the second quarter from a year ago.

It more than offset the 25 percent on-year drop in single premium investment-linked products, which was mainly due to investment uncertainty over market volatility.

While the take-up of Integrated Shield Plans has grown, the association cautioned that claim costs have gone up too, which could lead to higher premiums for consumers.

“Previously, we reported this was around 12 to 17 percent per annum. Obviously this is very high; it’s important for our member companies as well as the association to work with different stakeholders to make sure the inflation rate can be better controlled. We will continue to explore ways to see how to work on these issues together with the other stakeholders,” said Khoo.

Overall, new health insurance premiums amounted to SGD59 million in the second quarter, up by 25 percent from the previous quarter.