New enterprise premiums totaled S$1.21b for the primary quarter of the 12 months.
The Life Insurance coverage Affiliation, Singapore (LIA Singapore) reported that the life insurance coverage business logged a complete of S$1.21b ($870m) in weighted new enterprise premiums for Q1 2022, a 2% dip from the identical quarter final 12 months.
Single-premium merchandise recorded a 21% quarter-on-quarter (QoQ) improve in weighted premiums, totaling S$655.4m ($471.65m). Single-premium par and non-par merchandise comprised 88% of all single-premium purchases; single-premium linked merchandise made up the remaining 12%.
CPFIS included merchandise comprised 4%; and cash-funded merchandise accounted for the remaining 96%.
In the meantime, annual premium merchandise recorded a lack of 20% in gross sales in comparison with the identical interval final 12 months.
LIA Singapore additionally observed that the variety of new insurance policies bought on-line rose to 214,372 in Q1 2022 in comparison with 88,565 in Q1 2021. These purchases are transacted on-line by clients with no monetary advisor. Particularly, micro-insurance merchandise bought by an insurer had contributed to the big improve within the coverage depend noticed.
These on-line purchases totaled S$27m ($19.43m) in weighted premiums, accounting for two% of the entire weighted premiums for Q1 2022.
Built-in Protect Plans
In the meantime, Built-in Protect Plans (IPs) remained the most important medical insurance product.
A complete of forty thousand extra Singaporeans and Everlasting Residents have been lined by IPs as of 31 March 2022. In complete, 2.86 million lives – roughly 70% of Singapore residents – are protected by IPs, which offer protection on prime of MediShield Life.
Whole new enterprise premiums for particular person medical insurance for Q1 2022 amounted to S$82.9m ($59.66m). Total, IPs and IP rider premiums accounted for 83% and the remaining 17% comprised different medical plans and riders.
Between 1 January 2022 and 31 March 2022, the life insurance coverage business paid out S$2.29b ($1.65b) to policyholders and beneficiaries. Of this quantity, S$1.92b ($1.38b) was for insurance policies that matured. The remaining S$364m ($261.95m) was for dying, essential sickness or incapacity claims.
“Life insurance coverage was one of many few sectors that grew over the previous two years as shoppers more and more acknowledged the significance of life insurance coverage as an important part to monetary planning and safety. Because the nation steadily emerges from the pandemic’s headwinds, life insurers have famous the sustained reputation of single-premium merchandise for his or her comparatively engaging yields,” Khor Hock Seng, President of LIA Singapore stated.