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Date Published: 08.11.2018

Double digit growth for the first nine months of 2018 as Singapore's life insurance industry continues focus on bridging the protection gap

The Life Insurance Association, Singapore (LIA Singapore) today announced a strong set of industry results for the period January to September 2018 (YTD 3Q2018). Continuing the growth momentum from the start of 2018, Singapore's life insurance industry achieved a 15 per cent increase in weighted new business premiums1 compared to the same period last year. This amounted to S$3.17 billion for YTD 3Q2018. The industry continues to focus efforts on meeting the protection needs of individuals in Singapore, and will provide more details of industry-wide initiatives aimed at bridging the protection gap. This follows from the recent completion of its qualitative study to understand the barriers, and opportunities to getting more individuals in Singapore adequately protected. Economically active individuals in Singapore have an approximate 40 per cent mortality and critical illness gap totalling approximately S$893 billion in all, according to findings of the Association's Protection Gap Study (PGS) 2017.2 Mr. Patrick Teow, President of LIA Singapore, said, "Even though we are experiencing some headwinds due to the trade wars, it is reassuring that more Singaporeans are taking active measures to have their protection needs met. As an industry, we aim to develop more targeted public programmes so that we can continue to narrow the underinsurance gap and help Singaporeans adequately protect their quality of life for themselves and that of their loved ones. There is much more we can do for the betterment of society". Continued demand for protection products and health coverage Individuals are making good progress in getting more adequate protection. Year-on-year, total sum assured for new business increased by 10 per cent to reach S$101.8 billion in YTD 3Q2018. New business premiums3 for individual health insurance amounted to S$318.7 million for YTD 3Q2018, of which IP and IP rider premiums accounted for 92 per cent (S$292.2 million). The remaining eight per cent (S$26.5 million) came from other medical plans and riders. 70,000 more Singaporeans and Permanent Residents are now covered by Integrated Shield Plans (IPs) compared to YTD2017, adding to a total of 2.7 million lives, or approximately 68 per cent of Singapore residents, with IP coverage, which is over and above the MediShield Life component. Strong uptake of single premium products The industry recorded a 23 per cent increase from YTD 3Q2017, amounting to S$1.11 billion in weighted single premiums of which: Single premium par and non-par products comprised 72 per cent; Single premium linked products took the remaining 28 per cent  CPFIS-included products comprised 18 per cent; Cash-funded products took the remaining 82 per cent Annual premium products accounted for weighted annual premiums totalling S$2.06 billion in the first three quarters of the year, an encouraging 12 per cent increase from the corresponding period in 2017. The steady robust performance of single premium products reflects the introduction of new and targeted plans, heightened promotional activities of insurers, and a more positive economic sentiment. Uplift in purchase of policies for retirement By policy count, the industry recorded a notable year-on-year 36 per cent increase in the uptake of retirement policies designed to provide regular payouts to policyholders during retirement years.   More individuals took action to provide for their retirement as reflected in the purchase of 24,610 policies in the first nine months of 2018, compared to 18,054 policies purchased over the same period last year. By weighted premiums (YTD S$226 million), it accounts for approximately seven per cent of the total weighted premiums recorded for YTD 3Q2018, up from five per cent for YTD 3Q2017. Growing pool of talent driving the industry's transformation The life insurance industry expanded its workforce with a net increase of 330 employees and 306 tied representatives in the third quarter of 2018 alone to reflect a quarter-on-quarter increase of four per cent and two per cent respectively. Member companies employed a total of 8,001 individuals as at the end of the third quarter of 2018, increasing its workforce by 954 employees over a 12-month period. Positions being filled are in data analytics, cyber security, and business operations as Singapore's life industry drives digital innovation and overall business expansion. OTHER HIGHLIGHTS FOR YTD 3Q2018 Product Classification Par products accounted for 44 per cent of new sales while non-par products accounted for 36 per cent. Investment-linked products made up the remaining 20 per cent. Distribution Channels The contribution of new business by the different channels is as follows: Distribution channel By weighted premium (%) By number of policies (%) Tied Representatives 37 52 Bank Representatives 37 12 Financial Adviser Representatives 21 20 Others (products sold without intermediaries, e. g. DPI, ElderShield) 5 16 Product License Classification As at 30 September 2018, insurers holding "Normal" licenses contributed 98 per cent of new sales, while the "Defined Market Segments" (DMS) insurers4 made up the remaining two per cent of new sales for YTD 3Q2018. Group Insurance: Total Annual Premiums In-Force Total annual premiums in-force for group insurance business rose by seven per cent compared to the same period a year ago, amounting to S$1.16 billion. Assets In strengthening Singapore's position as a financial hub in Asia5, the life insurance industry manages assets of approximately S$205.0 billion, up nine per cent compared with a year ago. Assets of non-investment linked business accounted for S$169.8 billion, while the remaining S$35.2 billion were assets held for investment-linked business. LOOKING FORWARD Strong growth has been achieved so far and 2018 will likely end on a positive note. The forecast for the global economic outlook warns of negative impact kicking in from protectionist measures and counter-measures. However, life insurance is a resilient industry and the value of having financial protection offered by our products during challenging times becomes better appreciated by individuals. - End -   Note to Editor: Industry results of 3Q2018 are available at https://www. lia. org. sg/news-room/industry-performance/In Summary New Business Sales (Weighted Basis) Comparison with Corresponding Period Jan – Sep 2018 S$ Jan – Sep 2017S$ Change Single Premium 1,108.3 million 900.7 million 23%   Linked 308.1 million 221.6 million 39%   Non-linked 800.2 million 679.1 million 18% Annual Premium 2,061.4 million 1,847.0 million 12% Total 3,169.7 million 2,747.7 million 15% Comparison with Corresponding Quarter Jul – Sep 2018S$ Jul – Sep 2017S$ Change Single Premium 430.5 million 353.4 million 22%   Linked 111.0 million 84.1 million 32%   Non-linked 319.5 million 269.3 million 19% Annual Premium 719.8 million 712.3 million 1% Total 1,150.3 million 1,065.7 million 8% Comparison with Last Quarter Jul – Sep 2018S$ Apr – Jun 2018S$ Change Single Premium 430.5 million 395.4 million 9%   Linked 111.0 million 97.7 million 14%   Non-linked 319.5 million 297.7 million 7% Annual Premium 719.8 million 696.4 million 3% Total 1,150.3 million 1,091.8 million 5% 1 Weighted new business premiums measures premiums collected on new policies by taking into account (1) 10 per cent of the value of single premium products, (2) all of a year’s premiums for annual premium products, and (3) adjusted value for products with premium payment durations of less than 10 years.  The figure is calculated as follows: 10% Single Premium Insurance + 100% Annual Premium Insurance + Adjusted premium for Insurance with premium payment durations of less than 10 years. 2 More details on findings of LIA Singapore’s Protection Gap Study 2017 available at: http://www. lia. org. sg/news-room/media-releases/2018/life-insurance-industry-boosting-efforts-to-bridge-singapore-s-s-893-billion-mortality-and-critical-illness-protection-gap/  3 With effect from 1 January 2016, the MediShield Life premiums have been excluded from LIA statistics. New Business premiums refer to the premium due to the new business sold in the year, as well as incremental premiums from any repricing of plans, and change in age-band of the insureds.   4 DMS insurers are registered by MAS to conduct only non-CPF business and with minimum policy size. 5 Singapore unveils plan to bolster its status as an Asian financial hub (30 October 2017). AsiaOne. Available at: http://www. asiaone. com/singapore/singapore-unveils-plan-bolster-its-status-asian-financial-hub

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Date Published: 13.08.2018

Robust performance for 1H2018 as the life insurance industry continues to focus on protection needs

The Life Insurance Association, Singapore (LIA Singapore) today announced the industry results for the period January to June 2018 (1H2018). Continuing the first quarter's momentum of strong growth, the industry recorded a 20 per cent increase of weighted new business premiums1 from the previous year, totalling S$2.02 billion for 1H2018. Strong industry performance across all product types Contributing to this growth is the increase in uptake across both single and annual premium products. S$1.34 billion in weighted annual premiums were collected during the first half of the year, an encouraging 18 per cent increase from the corresponding period in 2017.   For single premium products, the industry recorded a 24 per cent increase from 1H2017, amounting to S$677.7 million in weighted single premiums, of which: Single premium par and non-par products comprised 71 per cent, the balance 29 per cent were single premium linked products CPFIS-included products comprised 19 per cent; Cash-funded products took the remaining 81 per cent On the whole, there has been a slight shift of consumers' interest away from participating products, to both non-participating products and investment-linked products, attributed to insurers’ new product launches, and improving market performances and economic conditions. Increased preparedness among individuals in Singapore against adversity The industry continues to make significant progress in supporting individuals in Singapore to better meet their protection needs and financial goals. Total sum assured for new business increased by 19 per cent on a year-on-year basis, amounting to S$66.3 billion in 1H2018. 70,000 more Singaporeans and Permanent Residents are now covered by Integrated Shield Plans (IPs) compared to 1H2017, leading to a total of 2.7 million lives, or approximately 68 per cent of Singapore residents, with IP coverage over and above the MediShield Life component. New business premiums2 for individual health insurance amounted to S$205.9 million for 1H2018, of which IP and IP rider premiums accounted for 91 per cent (S$188.2 million). The remaining nine per cent (S$17.7 million) came from other medical plans and riders. More individuals took action to provide for their retirement, with 14,505 policies designed to provide regular payouts during their retirement being bought in the first six months of 2018. This is a notable 36 per cent increase compared to 1H2017. These plans account for approximately six per cent of the total weighted premiums recorded for 1H2018. Follow-on to LIA Protection Gap Study "Later this year, we'll be announcing key actions that the industry will take to help individuals within segments of the community enhance the adequacy of their protection and financial provision," said Mr Patrick Teow, President of LIA Singapore. The key actions will be informed by insights gained from a qualitative consumer study, which was conducted to complement and understand the quantitative findings of the earlier Protection Gap Study from a behavioural science perspective. Job creation and upskilling As employment in Singapore continues to grow in the finance and insurance sectors3, we note a 12 per cent increase in the number of employed individuals within the life insurance industry in 1H2018. 7,671 individuals were employed by member companies, up from 6,857 staff in 1H2017. This increase is mainly due to new jobs created to support digitalisation and data analytics as well as business growth and expansion. 14,765 representatives held exclusive contracts with companies that operate a tied agency force. The industry continues to support re-training and upskilling efforts with the launch of the Institute of Banking and Finance (IBF) new career centre, IBF Careers Connect4. OTHER HIGHLIGHTS FOR 1H2018 Product Classification Par products accounted for 44 per cent of new sales while non-par products accounted for 35 per cent. Investment-linked products made up the remaining 21 per cent. Distribution Channels The contribution of new business by the different channels is as follows: Distribution channel By weighted premium (%) By number of policies (%) Tied Representatives 37 51 Bank Representatives 37 12 Financial Adviser Representatives 21 20 Others (products sold without intermediaries, e. g. DPI, ElderShield) 5 17 Product License Classification As at 30 June 2018, insurers holding "Normal" licenses contributed 98 per cent of new sales, while the "Defined Market Segments" (DMS) insurers5 made up the remaining two per cent of new sales for 1H2018. Group Insurance: Total Annual Premiums In-Force Total annual premiums in-force for group insurance business rose by eight per cent compared to the same period a year ago, amounting to S$1.14 billion. Assets In strengthening Singapore’s position as a financial hub in Asia6, the life insurance industry manages assets of approximately S$202.1 billion, up 11 per cent compared with a year ago. Assets of non-investment linked business accounted for S$167.1 billion, while the remaining S$35.0 billion were assets held for investment-linked business. LOOKING FORWARD The industry continues to contribute to Singapore's progress in fulfilling the SmartNation7  ambition. We can expect to see more digital initiatives being introduced by the industry players, to boost productivity, enhance customer services, and ensure security of data and personal information. The industry will not let up in its complementary efforts to ensure that the quality of life in Singapore improves, responding to rapid demographic shifts in Singapore, rising incidences of chronic illnesses and healthcare costs inflation. - End -   Note to Editor: Industry results of 1H2018 are available at https://www. lia. org. sg/news-room/industry-performance/ In Summary New Business Sales (Weighted Basis) Comparison with Corresponding Period Jan – Jun 2018S$ Jan – Jun 2017S$ Change Single Premium 677.7 million 547.3 million 24%   Linked 197.1 million 137.5 million 43%   Non-linked 480.6 million 409.8 million 17% Annual Premium 1,341.7 million 1,134.7 million 18% Total 2,019.4 million 1,682.0 million 20% Comparison with Corresponding Quarter Apr – Jun 2018S$ Apr – Jun 2017S$ Change Single Premium 395.4 million 266.0 million 49%   Linked 97.7 million 74.7 million 31%   Non-linked 297.7 million 191.3 million 56% Annual Premium 696.4 million 605.0 million 15% Total 1,091.8 million 871.0 million 25% Comparison with Last Quarter Apr – Jun 2018S$ Jan – Mar 2018S$ Change Single Premium 395.4 million 282.3 million 40%   Linked 97.7 million 99.3 million -2%   Non-linked 297.7 million 183.0 million 63% Annual Premium 696.4 million 642.8 million 8% Total 1,091.8 million 925.1 million 18% 1 Weighted new business premiums measures premiums collected on new policies by taking into account (1) 10 per cent of the value of single premium products, (2) all of a year’s premiums for annual premium products, and (3) adjusted value for products with premium payment durations of less than 10 years. The figure is calculated as follows: 10% Single Premium Insurance + 100% Annual Premium Insurance + Adjusted premium for Insurance with premium payment durations of less than 10 years. 2 With effect from 1 January 2016, the MediShield Life premiums have been excluded from LIA statistics. New Business premiums refer to the premium due to the new business sold in the year, as well as incremental premiums from any repricing of plans, and change in age-band of the insureds.   3 MOM: Total employment in Q2 2018 for Singapore grew faster than previous quarter (30 July 2018). Human Resources Online. Available at: http://www. humanresourcesonline. net/mom-total-employment-in-q2-2018-for-singapore-grew-faster-than-previous-quarter/ 4 New centre to help finance professionals plan their career (2 August 2018). The Straits Times. Available at: https://www. straitstimes. com/business/new-centre-to-help-finance-professionals-plan-their-career 5 DMS insurers are registered by MAS to conduct only non-CPF business and with minimum policy size. 6 Singapore unveils plan to bolster its status as an Asian financial hub (30 October 2017). AsiaOne. Available at: http://www. asiaone. com/singapore/singapore-unveils-plan-bolster-its-status-asian-financial-hub 7 Digital Government Blueprint (June 2018). SmartNation Singapore. Available at: https://www. smartnation. sg/docs/default-source/default-document-library/dgb_summary_june2018. pdf

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Date Published: 10.05.2018

Positive start to 2018 for the life insurance industry with strong uptake of annual premium products in the first quarter

The Life Insurance Association, Singapore (LIA Singapore) today announced the industry results for the period January to March 2018 (1Q2018). Overall, the life insurance industry started 2018 positively, recording a total of S$925.1 million in weighted new business premiums1 for 1Q2018, a 14 per cent growth from the previous year.   Linked policies recorded the highest growth in total weighted premiums of S$208 million, with an 82 per cent increase from 1Q2017. S$642.8 million in weighted annual premiums were registered during the first three months of the year, reflecting an encouraging 21 per cent increase from the corresponding period in 2017.   This is attributed to increases recorded across all policy types namely; linked, participating and non-participating policies. For single premium products, the industry recorded S$282.3 million in weighted single premiums, a 0.4 per cent increase from 1Q2017, for which: Single premium par and non-par products comprised 65 per cent, the balance 35 per cent were single premium linked products CPFIS-included products comprised 24 per cent; Cash-funded products took the remaining 76 per cent Rise in sum assured and uptake of protection-focused policies The industry continues to make significant progress in supporting individuals in Singapore to better meet their protection needs. There was a significant 23 per cent year-on-year increase in total sum assured for new business, amounting to S$29.9 billion in 1Q2018. Mr Patrick Teow, President of LIA Singapore, said, “While our Protection Gap Study 2017 found a persistent gap in the level of protection amount in Singapore2, it is heartening to know that more people are taking actions to get better insured. Collectively, the life insurance industry will not only look at continuing ongoing public education efforts, we will also develop more targeted public engagement programmes based on insights from our follow-up qualitative study, so that we can help more individuals in Singapore better protect their loved ones, their future, and their quality of life. ” As at 31 March 2018, the life insurance industry paid out S$1.30 billion to policyholders and beneficiaries. Of this amount, S$1.06 billion was for policies that matured. The remaining S$237 million was for death, critical illness, or disability claims. LIA Singapore launched the enhanced “Register of Unclaimed Life Insurance Proceeds”3 in April 2018. The register now includes unclaimed monies from a wider range of individual insurance policies, allowing insurance benefits to eventually reach more policyholders and claimants. Steady uptake of retirement-focused policies The industry’s results for the first quarter also reflect the increasing awareness and actions taken by individuals to better prepare for retirement. Within the first three months of 2018, there was an uptake of 6,631 policies that are designed to provide regular payouts to policyholders during retirement years.   This is a notable 30 per cent increase compared to 1Q2017. These plans account for approximately six per cent of the total weighted premiums, recorded for 1Q2018. Increased number of lives covered by IPs Compared with a year ago, 70,000 more Singaporeans and Permanent Residents are covered by Integrated Shield Plans (IPs), leading to a total of 2.68 million lives or approximately 68 per cent of Singapore residents with IP coverage over and above the MediShield Life component. New business premiums4 for individual health insurance totalled S$105.7 million for 1Q2018, of which IP and IP rider premiums accounted for 90 per cent (S$95.5 million). The remaining 10 per cent (S$10.2 million) came from other medical plans and riders. OTHER HIGHLIGHTS FOR 1Q2018 Product Classification Par products accounted for 47 per cent of new sales while non-par products accounted for 31 per cent. Investment-linked products made up the remaining 22 per cent. Distribution Channels The contribution of new business by the different channels is as follows: Distribution channel By weighted premium (%) By number of policies (%) Tied Representatives 37 52 Bank Representatives 38 12 Financial Adviser Representatives 20 18 Others (products sold without intermediaries, e. g. DPI, ElderShield) 5 18 Product License Classification As at 31 March 2018, insurers holding “Normal” licenses contributed 98 per cent of new sales, while the “Defined Market Segments” (DMS) insurers5 made up the remaining two per cent of new sales for 1Q2018. Group Insurance: Total Annual Premiums In-Force Total annual premiums in-force for group insurance business rose by seven per cent compared to the same period a year ago, amounting to S$1.11 billion. Assets In strengthening Singapore’s position as a financial hub in Asia6, the life insurance industry manages assets of approximately S$202.9 billion, up 17 per cent compared with a year ago. Assets of non-investment linked business accounted for S$167.6 billion, while the remaining S$35.3 billion were assets held for investment-linked business. Manpower in the Industry As employment in Singapore continues to grow in the finance and insurance sectors7, we note a 10 per cent increase in the number of employed individuals within the life insurance industry in 1Q2018. 7,594 individuals were employed by member companies, up from 6,883 staff in 1Q2017. 14,817 representatives held exclusive contracts with companies that operate a tied agency force. LOOKING FORWARD The industry’s primary focus is on helping more individuals bridge their protection gaps. Findings from the qualitative study are targeted for release in the second half of the year. Meanwhile, digitalisation efforts by individual insurers to improve the customer experience and journey are gaining momentum. - End - Note to Editor: Industry results of 1Q2018 are available at https://www. lia. org. sg/news-room/industry-performance/ In Summary New Business Sales (Weighted Basis) Comparison with Corresponding Period Jan – Mar 2018S$ Jan – Mar 2017S$ Change Single Premium 282.3 million 281.3 million 0.4%   Linked 99.3 million 62.8 million 58%   Non-linked 183.0 million 218.5 million -16% Annual Premium 642.8 million 529.7 million 21% Total 925.1 million 811.0 million 14% Comparison with Last Quarter Jan – Mar 2018S$ Oct – Dec 2017S$ Change Single Premium 282.3 million 563.2 million -50%   Linked 99.3 million 173.8 million -43%   Non-linked 183.0 million 389.4 million -53% Annual Premium 642.8 million 777.3 million -17% Total 925.1 million 1,340.5 million -31% 1 Weighted new business premiums measures premiums collected on new policies by taking into account (1) 10 per cent of the value of single premium products, (2) all of a year’s premiums for annual premium products, and (3) adjusted value for products with premium payment durations of less than 10 years.   The figure is calculated as follows: 10% Single Premium Insurance + 100% Annual Premium Insurance + Adjusted premium for Insurance with premium payment durations of less than 10 years.   2 Singapore lacks 80% of critical illness protection needs: Life Insurance Association (26 April 2018). TODAY. Available at: https://www. todayonline. com/singapore/singaporeans-lack-80-critical-illness-protection-needs-life-insurance-association 3 Register of unclaimed insurance proceeds now covers wider range of payouts: LIA (5 April 2018). The Business Times. Available at: http://www. businesstimes. com. sg/banking-finance/register-of-unclaimed-insurance-proceeds-now-covers-wider-range-of-payouts-lia 4 With effect from 1 January 2016, the MediShield Life premiums have been excluded from LIA statistics. New Business premiums refer to the premium due to the new business sold in the year, as well as incremental premiums from any repricing of plans, and change in age-band of the insureds.   5 DMS insurers are registered by MAS to conduct only non-CPF business and with minimum policy size. 6 Singapore unveils plan to bolster its status as an Asian financial hub (30 October 2017). AsiaOne. Available at: http://www. asiaone. com/singapore/singapore-unveils-plan-bolster-its-status-asian-financial-hub 7 Unemployment rates in Singapore declined in Q1 2018. (30 April 2018). Human Resources Online. Available at: http://www. humanresourcesonline. net/unemployment-rates-in-singapore-declined-in-q1-2018/

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Date Published: 09.02.2018

Life insurance industry achieves record-breaking growth in 2017 as key initiatives continue to make significant progress

The Life Insurance Association, Singapore (LIA Singapore) today announced stellar industry results for the period January to December 2017 (YTD 4Q2017). Industry milestone achieved with double-digit growth across all product types Singapore’s life insurance industry crossed a significant milestone in 2017 with total weighted new business premiums1 reaching S$4,088.2 million for the year. This is the highest amount recorded to date. An impressive 24 per cent increase compared to the same period in 2016 affirms the industry’s outstanding progress in the past 12 months. There was also strong double-digit growth across both single and annual premium products within the period. Weighted single premiums rose significantly by 43 per cent to reach S$1,463.9 million, based on a year-on-year comparison with: Single premium par and non-par products comprised 73 per cent, the balance 27 per cent were single premium linked products; CPFIS-included products comprised 14 per cent; Cash-funded products took the remaining 86 per cent There was a remarkable 91 per cent jump in uptake of single premium products in the last quarter of the year (compared to Q4 2016). The total S$563.2 million recorded within the three months account for 38 per cent of the entire year’s figure. Increased sum assured and uptake of protection-focused policies The industry continues to make significant progress in supporting individuals in Singapore better meet their protection needs.   Total sum assured for new business rose strongly by 12 per cent year-on-year, totalling S$130.5 billion, continuing an upward trend since 2014. As at 31 December 2017, the life insurance industry paid out S$5.82 billion to policyholders and beneficiaries. Of this amount, S$4.93 billion was for policies that matured. The remaining S$884 million was for death, critical illness, or disability claims. Additionally, in keeping with the national focus on retirement planning, the industry saw an uptake of 25,775 policies designed to provide regular payouts to policyholders during retirement years. This represents a 27 per cent increase from the previous year. Such plans account for approximately five per cent of the total weighted premiums for YTD 4Q2017. Continued accessibility of healthcare and healthcare insurance Health insurance premiums2 totalled S$374 million for YTD 4Q2017, of which Integrated Shield Plans (IP) premiums and IP riders accounted for 91 per cent (S$341 million). The remaining nine per cent (S$33 million) came from other medical plans and riders. As at 31 December 2017, 2.66 million lives, or approximately 67 per cent of Singapore residents have an IP which provides coverage over and above the component included in MediShield Life. 2017 also saw the implementation and progress on numerous recommendations put forth by the industry-driven Health Insurance Task Force (HITF) with the aim of bringing together all relevant stakeholders to collaborate and take pro-active steps to collectively manage the escalating healthcare and healthcare insurance costs in Singapore. Several insurers have also introduced: Preferred panel of medical specialists Pre-authorisation of medical treatment Health and wellness programmes for customers On a national level, LIA Singapore is part of the 13-member Fee Benchmark Advisory Committee appointed by the Ministry of Health to recommend appropriate fee guidelines for medical procedures and services. Mr. Patrick Teow, President of LIA Singapore, said, “In addition to remarkable growth achieved in 2017, we are also heartened by steady progress being made to ensure that healthcare remains affordable for Singaporeans. The life insurance industry will continue to take the lead in driving initiatives based on recommendations made by the Task Force. This reflects our commitment to supporting national priorities and helping more members of the community get adequately insured, particularly important to maintain the quality of life in Singapore at a time of significant demographic change. ” OTHER HIGHLIGHTS FOR YTD 4Q2017 Product Classification Par products accounted for 46 per cent of new sales while non-par products accounted for 36 per cent. Investment-linked products made up the remaining 18 per cent. Distribution Channels The contribution of new business by the different channels of distribution remains relatively constant, and is as follows: Distribution channel By weighted premium (%) By number of policies (%) Tied Representatives 38 56 Bank Representatives 37 12 Financial Adviser Representatives 19 17 Others (products sold without intermediaries, e. g. DPI, ElderShield) 6 15 Product License Classification As at 31 December 2017, insurers holding “Normal” licenses contributed 98 per cent of new sales, while the “Defined Market Segments” (DMS) insurers3 made up the remaining two per cent of new sales for YTD 4Q2017. Group Insurance: Total Annual Premiums In-force Total annual premiums in-force for group insurance business rose by 11 per cent compared to the same period a year ago, amounting to S$1.09 billion. Assets In strengthening Singapore’s position as a financial hub in Asia4, the life insurance industry manages assets of approximately S$194.3 billion, up 12 per cent compared with a year ago. Assets of non-investment linked business accounted for S$161.4 billion, while the remaining S$32.9 billion were assets held for investment-linked business. Manpower in the Industry As employment in Singapore continues to grow in the finance and industry sector5, we note an 11 per cent increase in the number of employed individuals within the life insurance industry in YTD 4Q2017. 7,429 individuals were employed by member companies, up from 6,663 staff in YTD 4Q2016. 14,793 representatives held exclusive contracts with companies that operate a tied agency force. LOOKING FORWARD As the life insurance industry continues to create value for people and support the Singapore economy by playing an integral role in driving the financial services industry transformation map (ITM), we look to: Enhance professional standards to strengthen trust in the industry Raise awareness and understanding of the protection gap, and encourage action by members to play their parts Leverage digitalisation effectively to improve the lives of people in Singapore Review the register of unclaimed proceeds to introduce enhancement, so that more unclaimed proceeds can be successfully paid out. - End -   Note to Editor: Industry results of YTD 4Q2017 are available at https://www. lia. org. sg/news-room/industry-performance/ In Summary New Business Sales (Weighted Basis)  Comparison with Corresponding Period Jan – Dec 2017S$ Jan – Dec 2016S$  Change Single Premium 1,463.9 million 1,025.1 million 43%   Linked 395.4 million 226.1 million 75%   Non-linked 1,068.5 million 799.0 million 34% Annual Premium 2,624.3 million 2,261.1 million 16% Total 4,088.2 million 3,286.2 million 24% Comparison with Corresponding Quarter Oct – Dec 2017S$ Oct – Dec 2016S$ Change Single Premium 563.2 million 294.2 million 91%   Linked 173.8 million 67.3 million 158%   Non-linked 389.4 million 226.9 million 72% Annual Premium 777.3 million 661.1 million 18% Total 1,340.5 million 955.3 million 40% Comparison with Last Quarter Oct – Dec 2017S$ Jul – Sep 2017S$ Change Single Premium 563.2 million 353.4 million 59%   Linked 173.8 million 84.1 million 107%   Non-linked 389.4 million 269.3 million 45% Annual Premium 777.3 million 712.3 million 9% Total 1,340.5 million 1,065.7 million 26% 1  Weighted new business premiums measures premiums collected on new policies by taking into account (1) 10 per cent of the value of single premium products, (2) all of a year’s premiums for annual premium products, and (3) adjusted value for products with premium payment durations of less than 10 years.   The figure is calculated as follows: 10% Single Premium Insurance + 100% Annual Premium Insurance + Adjusted premium for Insurance with premium payment durations of less than 10 years.   2   With effect from 1 January 2016, the MediShield Life premiums have been excluded from LIA statistics. 3   DMS insurers are registered by MAS to conduct only non-CPF business and with minimum policy size. 4   Singapore unveils plan to bolster its status as an Asian financial hub (30 October 2017). AsiaOne. Available at: http://www. asiaone. com/singapore/singapore-unveils-plan-bolster-its-status-asian-financial-hub   5   Overall jobless rate in Q3 nudges down to 2.1%: MOM (27 October 2017). Channel NewsAsia. Available at: http://www. channelnewsasia. com/news/business/overall-jobless-rate-in-q3-nudges-down-to-2-1-mom-9349262  

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Industry Performance