Singapore’s life insurance sector has experienced a remarkable 23.5% year-on-year surge in weighted new business premiums, reaching S$4.3 billion in the first nine months of 2024, according to data from the Life Insurance Association (LIA) of Singapore.
Despite facing global economic uncertainties, the Singapore life insurance market has demonstrated impressive resilience. In the third quarter of 2024 alone, weighted new business premiums climbed by 18.2% compared to the same period last year. This steady growth underscores the sector’s ability to thrive even in challenging times.
Dennis Tan, President of LIA Singapore, highlighted the sector’s robust performance, attributing it to Singaporeans’ ongoing emphasis on long-term financial protection. “Our industry remains committed to offering innovative products that align with consumers’ needs for protection, savings, and investment,” Tan stated.
Diversified Premiums Drive Overall Surge
The significant increase in new business premiums can be attributed to strong performances across various policy types. Group Life & Health premiums saw a 13% year-on-year rise, totaling S$2.5 billion in the third quarter of 2024. Meanwhile, annual premium policies experienced a substantial jump of 24.8%, reaching S$3.0 billion.
- Group Life & Health: Up 13% YoY to S$2.5 billion
- Annual Premium Policies: Increased by 24.8% to S$3.0 billion
- Single-Premium Policies: Rose 20.6% to S$1.3 billion in YTD Q3 2024
This diversification not only boosts revenue but also enhances the sector’s ability to cater to a broader range of consumer needs.
Sum Assured and Payouts Reflect Sector Health
The total sum assured in the Singapore life insurance sector has grown to S$110.6 billion, marking a 4.8% increase from the previous year. Financial Adviser (FA) representatives played a significant role, facilitating S$43.3 billion in sum assured, which accounts for 39.1% of the total. Tied Representatives contributed an additional S$37.0 billion, representing 33.5%.
| Category | Sum Assured (USD) |
|---|---|
| Financial Adviser Reps | S$43.3 billion |
| Tied Representatives | S$37.0 billion |
| Total | S$110.6 billion |
The industry has also maintained healthy payout levels, distributing S$14.8 billion to policyholders in the first nine months of 2024. This includes S$13.4 billion for policy maturities and S$1.4 billion for death, critical illness, and disability claims.
Employment Trends and Digital Transformation Efforts
While the sector has seen impressive financial growth, employment has slightly decreased by 2.0%, bringing the total number of employees to 9,578 by the end of September. However, this decline is offset by active recruitment efforts focused on digital transformation, signaling a strategic shift towards modernizing operations.
Additionally, 13,149 representatives now hold exclusive contracts with tied-agency companies, indicating a move towards more specialized and dedicated sales forces within the industry.
Strategic Focus on Innovation and Consumer Needs
Looking ahead, the Singapore life insurance sector is poised to continue its upward trajectory by prioritizing innovation and aligning product offerings with evolving consumer demands. The emphasis on digital transformation is expected to enhance customer experiences and streamline operations, making insurance products more accessible and tailored to individual needs.
- Digital Transformation: Investing in technology to improve service delivery and operational efficiency.
- Product Innovation: Developing new insurance products that cater to diverse consumer requirements.
- Customer Engagement: Enhancing interactions with customers through personalized services and digital platforms.
These initiatives are aimed at not only sustaining growth but also ensuring that the sector remains competitive in a rapidly changing market landscape.
The Singapore life insurance sector’s impressive 24% surge in weighted new business premiums over nine months of 2024 reflects a strong and resilient industry. With diversified premium growth, substantial sum assured increases, and strategic investments in digital transformation, the sector is well-positioned to continue its robust performance. As Dennis Tan aptly put it, the focus remains steadfast on providing innovative and comprehensive financial protection solutions that meet the evolving needs of Singaporeans.
