Business

Life insurance sector shows growth


The life insurance industry achieved double-digit growth for the first nine months of this year, chalking up strong uptake across all product types.

Total weighted new business premiums for the year to September rose 18 per cent year on year to $2.75 billion, said the Life Insurance Association Singapore (LIA) yesterday.

The sum assured for new business climbed 14 per cent to $92.5 billion, with growth in both single- and annual-premium products.

Year on year, there was a 23 per cent increase to $900.7 million in weighted single premiums, a 15 per cent increase to $1.85 billion in weighted annual premiums and a 27 per cent increase to $147 million in weighted premiums for retirement products.

INTEGRATED SHIELD PLANS

Health insurance premiums totalled $258 million for the nine months, of which Integrated Shield Plans (IP) premiums and IP riders accounted for 91 per cent ($234 million). The remaining 9 per cent ($24 million) came from other plans and riders.

As at end-September, 2.94 million Singaporeans had an IP, which provides coverage over and above the included MediShield Life component.

LIA noted an uptake of 18,054 policies designed to provide regular payouts to policyholders during retirement years, representing a 24 per cent increase over the figure for the corresponding period last year.

Said LIA president Patrick Teow: "More Singaporeans are recognising the value of financial planning and insurance for their future, and this is reflected in yet another quarter of strong growth for the life insurance industry."

The industry paid out $4.07 billion in claims to policyholders and beneficiaries for the year to end-September.

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