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Life insurance business rises 15% to S$813m in Q3

SINGAPORE — The Republic’s life insurance industry achieved a 15 per cent rise in total weighted new business premiums in the third quarter from the previous corresponding period to S$813 million, helped by an increase in annual premium products sales, the Life Insurance Association (LIA) reported yesterday.

SINGAPORE — The Republic’s life insurance industry achieved a 15 per cent rise in total weighted new business premiums in the third quarter from the previous corresponding period to S$813 million, helped by an increase in annual premium products sales, the Life Insurance Association (LIA) reported yesterday.

During the three months ended Sept 30, there was a 21 per cent surge in the uptake of annual premium products to S$541.9 million as well as a 13 per cent boost in the purchase of single premium investment-linked policies to S$60.6 million, the LIA said.

“This is also higher than the second quarter 2015 results, and is largely attributed to three factors, namely new product launches, sales and marketing initiatives and increased uptake in savings-oriented products through bancassurance,” it said.

Providing an update on the Direct Purchase Insurance scheme implemented on April 7 this year, the LIA reported slow take-up, with just S$347,000 in weighted new premiums to date. Still, total weighted new business premiums amounted to nearly S$2.17 billion in the first nine months this year, up 7 per cent from the corresponding period last year.

The LIA also said total new health insurance premiums in the first three quarters of the year totalled S$146 million, of which 87 per cent went to Integrated Shield Plans (IPs) and IP riders.

Consumers will likely take a wait-and-see approach given that MediShield Life was just launched last Sunday.

Nevertheless, IP insurers will continue to work closely with the Ministry of Health to promote awareness of the new scheme and show how topping-up for a private IP plan can complement it, the association said.

“All IP insurers have in place training programmes, guidebooks with Frequently Asked Questions and other reference points to ensure that financial adviser representatives are trained on the changes and able to assist policyholders,” it said.

It added that the industry will also continue working with the regulators to ensure a smooth transition and implementation of all Financial Advisory Industry Review (FAIR) initiatives, which are aimed at raising the standards of the industry. Lee Yen Nee

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