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Industry Performance
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Date Published: 08.11.2017
Life insurance industry achieves double digit growth to date with strong uptake across all product types
The Life Insurance Association, Singapore (LIA Singapore) today announced industry results for the period January to September 2017 (YTD 3Q2017), with an 18 per cent increase in total weighted new business premiums1 amounting to S$2,747.7 million for the first three quarters of the year. There was a strong 14 per cent increase in sum assured for new business compared to the corresponding period in 2016, totalling S$92.5 billion, attributed to an increase in uptake across both single and annual premium products. Compared to the same period in 2016, the industry recorded: A 23 per cent increase to S$900.7 million in weighted single premiums: Single premium par and non-par products comprised 75 per cent, the balance 25 per cent were single premium linked products CPFIS-included products comprised 15 per cent; Cash-funded products took the remaining 85 per cent A 15 per cent increase to S$1,847.0 million in weighted annual premiums A 27 per cent increase to $147 million in total weighted premiums for retirement products Health insurance premiums2 totalled S$258 million for YTD 3Q2017, of which Integrated Shield Plans (IP) premiums and IP riders accounted for 91 per cent (S$234 million). The remaining nine percent (S$24 million) came from other medical plans and riders. As at 30 September 2017, 2.94 million lives, or approximately three in four Singaporeans, have an IP which provides coverage over and above the included MediShield Life component. Notably, there was an uptake of 18,054 policies designed to provide regular payouts to policyholders during retirement years, representing a 24 per cent increase compared to the same period in 2016. Such plans accounted for approximately five per cent of the total weighted premiums for YTD 3Q2017. Mr. Patrick Teow, President of LIA Singapore, said, “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. Especially against the backdrop of Singapore’s rapidly greying population, we are heartened that Singaporeans are actively taking up insurance policies to secure steady income streams in their retirement years. Ensuring sustainable access to affordable healthcare is another key area of focus as our population continues to age. ” OTHER HIGHLIGHTS FOR YTD 3Q2017 Product Classification Par products accounted for 50 per cent of new sales while non-par products accounted for 34 per cent. Investment-linked products made up the remaining 16 per cent. Distribution Channels The contribution of new business by the different channels of distribution is as follows: Distribution channel By weighted premium (%) By number of policies (%) Tied Representatives 36 55 Bank Representatives 40 13 Financial Adviser Representatives 19 17 Others (products sold without intermediaries, e. g. DPI, ElderShield) 5 15 Product License Classification As at 30 September 2017, insurers holding “Normal” licenses contributed 97 per cent of new sales, while the “Defined Market Segments” (DMS) insurers3 made up the remaining three per cent of new sales for YTD 3Q2017. Claims Payout As at 30 September 2017, the life insurance industry paid out S$4.07 billion to policyholders and beneficiaries. Of this amount, S$3.41 billion was for policies that matured. The remaining S$657 million was for death, critical illness or disability claims. Life insurance continues to play a key role in providing policyholders and their families with peace of mind, knowing that insurance payouts will alleviate the financial burdens arising from sickness, death, or simply, a long retirement. 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$1.08 billion. Assets In strengthening Singapore’s position as one of the leading global financial hubs4, the life insurance industry manages assets of approximately S$188.2 billion, up 13 per cent compared with a year ago. Assets of non-investment linked business accounted for S$156.2 billion, while the remaining S$32.0 billion were assets held for investment-linked business. Manpower in the Industry As employment in Singapore continues to grow in the finance and industry sector5, we note an eight per cent increase in the number of employed individuals within the life insurance industry in YTD 3Q2017. 7,047 individuals were employed by member companies, up from 6,540 staff in YTD 3Q2016. The industry continues to seek talent in all areas, including underwriting and specialised digital technologies. 14,790 representatives held exclusive contracts with companies that operate a tied agency force. LOOKING FORWARD We remain committed to providing solutions to meet Singaporeans’ protection needs and we look forward to sharing the findings from the upcoming LIA Protection Gap Study. - End - Note to Editor: Industry results of YTD 3Q2017 are available at https://www. lia. org. sg/news-room/industry-performance/ In Summary New Business Sales (Weighted Basis) Comparison with Corresponding Period Jan – Sep 2017S$ Jan – Sep 2016S$ Change Single Premium 900.7 million 730.8 million 23% Linked 221.6 million 158.8 million 40% Non-linked 679.1 million 572.0 million 19% Annual Premium 1,847.0 million 1,600.1 million 15% Total 2,747.7 million 2,330.9 million 18% Comparison with Corresponding Quarter Jul – Sep 2017S$ Jul – Sep 2016S$ Change Single Premium 353.4 million 232.8 million 52% Linked 84.1 million 61.2 million 37% Non-linked 269.3 million 171.6 million 57% Annual Premium 712.3 million 575.4 million 24% Total 1,065.7 million 808.2 million 32% Comparison with Last Quarter Jul – Sep 2017S$ Apr – Jun 2017S$ Change Single Premium 353.4 million 266.0 million 33% Linked 84.1 million 74.7 million 13% Non-linked 269.3 million 191.3 million 41% Annual Premium 712.3 million 605.0 million 18% Total 1,065.7 million 871.0 million 22% 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
Date Published: 07.08.2017
Life insurance industry sees sustained momentum of healthy growth from first quarter
The Life Insurance Association Singapore (LIA Singapore) today announced that the industry continues on a momentum of strong growth from the first quarter, having achieved a total of S$1,682.0 million in weighted new business premiums1 for the first half of 2017. Accordingly, the industry recorded a significant 10 per cent increase in sum assured for new business compared to the corresponding period in 2016, totalling S$55.9 billion. This is a positive development in the context of economic uncertainties, an ageing population and a soft labour market2. There was an increase in uptake across both single and annual premium products. Compared to the same period in 2016, the industry recorded: A 10 per cent increase to S$ 547.3 million in weighted single premiums: Single premium par and non-par products comprised 75 per cent, the balance 25 per cent were single premium linked products CPFIS-included products comprised 15 per cent; Cash-funded products took the remaining 85 per cent A 11 per cent increase to S$ 1,134.7 million in weighted annual premiums Health insurance premiums 3 totalled S$154 million for 1H2017, of which Integrated Shield Plans (IP) premiums and IP riders accounted for 90 per cent (S$139 million). The remaining ten percent (S$15 million) came from other medical plans and riders. As at 30 June 2017, 2.92 million lives (approximately one in two individuals in Singapore) are insured. Mr. Patrick Teow, President of LIA Singapore, said, “We are encouraged that the industry continues to grow from strength to strength. While we tirelessly work towards narrowing Singapore’s protection gap, helping Singaporeans to be better prepared for retirement is also a priority. We see a steady take up of products designed to provide regular payouts from retirement age. This shows that people are appreciating the importance of preparing ahead for their future years. Retirement planning is an ongoing concern for both pre-retirees and their children because by 2030, there will only be two working adults supporting one retiree, as compared to about five per retiree last year4. The younger generation will be shouldering a greater financial burden of supporting the ageing population and ensuring that they have enough for other milestones, such as marriage and setting up their own families. ” Notably, there was an uptake of 10,680 policies designed to provide regular payouts to policyholders during retirement years, with approximately S$84 million of weighted new premiums recorded over the half year. Such plans accounted for approximately five per cent of the total weighted premiums for 1H2017. OTHER HIGHLIGHTS FOR 1H2017 Product Classification Par products accounted for 53 per cent of new sales while non-par products accounted for 32 per cent. Investment-linked products made up the remaining 15 per cent. Distribution Channels The contribution of new business by the different channels of distribution remained consistent as follows: Distribution channel By weighted premium (%) By number of policies (%) Tied Representatives 35 55 Bank Representatives 43 13 Financial Adviser Representatives 18 17 Others (products sold without intermediaries, e. g. DPI, ElderShield) 4 15 Product License Classification As at 30 June 2017, insurers holding “Normal” licenses contributed 97 per cent of new sales, while the “Defined Market Segments” (DMS) insurers5 made up the remaining three per cent of new sales for 1H2017. Claims Payout As at 30 June 2017, the life insurance industry paid out S$2.82 billion to policyholders and beneficiaries. Of this amount, S$2.38 billion was for policies that matured. The remaining S$440 million was for death, critical illness or disability claims. Life insurance continues to play a key role in providing policyholders and their families with peace of mind, knowing that insurance payouts will alleviate the financial burdens arising from sickness, death, or simply, a long retirement. Group Insurance: Total Annual Premiums In-force Total annual premiums in-force for group insurance business rose by seven per cent compared with a year ago, amounting to S$1.05 billion. Assets In strengthening Singapore’s position as one of the leading global financial hubs6, the life insurance industry manages assets of approximately S$182.4 billion, up 11 per cent compared with a year ago. Assets of non-investment linked business accounted for S$151.3 billion, while the remaining S$31.1 billion were assets held for investment-linked business. Manpower in the Industry As employment in Singapore continues to grow in the finance and industry sector7, we note an eight per cent increase in the number of employed individuals within the life insurance industry in 1H2017. 6,857 individuals were employed by member companies, up from 6,328 staff in 1H2016. The industry continues to seek talent in all areas, including underwriting and specialised digital technologies. 14,355 representatives held exclusive contracts with companies that operate a tied agency force. LOOKING FORWARD We aim to release the results of LIA’s Protection Gap Study before 2018. The industry and individual life insurers are actively aligned to make Singapore a digitised nation. - End - Note to Editor: Industry results of 1H2017 are available at https://www. lia. org. sg/news-room/industry-performance/ In Summary New Business Sales (Weighted Basis) Comparison with Corresponding Period Jan – Jun 2017S$ Jan – Jun 2016S$ Change Single Premium 547.3 million 498.0 million 10% Linked 137.5 million 97.5 million 41% Non-linked 409.8 million 400.5 million 2% Annual Premium 1,134.7 million 1,024.6 million 11% Total 1,682.0 million 1,522.6 million 10% Comparison with Corresponding Quarter Apr – Jun 2017S$ Apr – Jun 2016S$ Change Single Premium 266.0 million 282.1 million -6% Linked 74.7 million 51.9 million 44% Non-linked 191.3 million 230.2 million -17% Annual Premium 605.0 million 562.8 million 7% Total 871.0 million 844.9 million 3% Comparison with Last Quarter Apr – Jun 2017S$ Jan – Mar 2017S$ Change Single Premium 266.0 million 281.3 million -5% Linked 74.7 million 62.8 million 19% Non-linked 191.3 million 218.5 million -12% Annual Premium 605.0 million 529.7 million 14% Total 871.0 million 811.0 million 7% 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 S’pore economy on track to pick up pace: IMF, The Straits Times, Jul 30, 2017, http://www. straitstimes. com/business/economy/spore-economy-on-track-to-pick-up-pace-imf?login=true 3 With effect from 1 January 2016, the MediShield Life premiums has been excluded from LIA statistics. 4 Housing choice linked to retirement comfort (30 Nov 2016). AsiaOne. Available at: http://www. asiaone. com/singapore/housing-choice-linked-retirement-comfort 5 DMS insurers are registered by MAS to conduct only non-CPF business and with minimum policy size. 6 Singapore ‘third-best financial centre’ (9 April 2016). The Straits Times. Available at: http://www. straitstimes. com/business/companies-markets/singapore-third-best-financial-centre?login=true 7 Fewer layoffs, unemployment situation improves in Q2: Manpower Ministry (28 July 2017). Channel NewsAsia. Available at: http://www. channelnewsasia. com/news/singapore/fewer-layoffs-unemployment-situation-improves-in-q2-manpower-9072274
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Industry Performance
Date Published: 08.05.2017
Strong start to 2017 for life insurance industry
Positive growth in single premium and annual premium business due to new products and distribution channels. Singapore’s life insurance industry started the year strongly with a total of S$811.0 million in weighted new business premiums1 for the period January to March (1Q2017), a 19 per cent increase compared to 1Q2016. The industry continued to contribute to Singapore’s economy which expanded by two per cent in 2016, beating initial forecasts2. Results for 1Q2017 were announced by the Life Insurance Association Singapore (LIA Singapore) today. The continued healthy growth can be attributed to the industry’s agility in responding to consumers’ fast-changing needs. Life insurers are providing consumers more options in the form of new products and multiple channels to buy insurance policies from. This is also reflected in increased engagement through activities across the different distribution channels, including tied agents, banks and financial advisers. There was an increase in uptake across both single and annual premiums. Compared to same period in 2016, the industry recorded: A 30 per cent increase to S$281.3 million in weighted single premiums: Single premium par and non-par products comprised 78 per cent, the balance 22 per cent were single premium linked products CPFIS-included products comprised 13 per cent; Cash-funded products took the remaining 87 per cent A 14 per cent increase to S$529.7 million in weighted annual premiums Mr. Patrick Teow, President of LIA Singapore, said, “The encouraging results in the first quarter point to our core focus of bridging Singapore’s protection gap. Work is underway on a fresh Protection Gap Study this year. Ensuring adequate protection is especially critical at a time of economic uncertainty and rapid demographic shifts in Singapore. Life insurers are increasingly leveraging digitalisation to innovate and respond to these fundamental changes. ” Accordingly, the industry recorded sum assured for new business totalling S$24.3 billion. This was a significant 10 per cent increase compared to the corresponding period in 2016 as the industry continues to better meet the protection needs of society. On top of this, approximately 20,000 Singapore residents bought additional health insurance coverage to complement MediShield Life in the first quarter of the year. In all, new health insurance premiums3 totalled S$66 million for 1Q2017, of which Integrated Shield Plans (IP) premiums and IP riders accounted for 90 per cent (S$59 million). The remaining S$7 million was contributed by other medical plans and riders. As at 31 March 2017, 2.91 million lives (approximately one in two individuals in Singapore) are insured. OTHER HIGHLIGHTS FOR 1Q2017 Product Classification Par products accounted for 55 per cent of new sales while non-par products accounted for 31 per cent. Investment-linked products made up the remaining 14 per cent. Distribution Channels The contribution of new business by the different channels of distribution is as follows: Distribution channel By weighted premium (%) By number of policies (%) Tied Representatives 33 53 Bank Representatives 46 16 Financial Adviser Representatives 17 16 Others (products sold without intermediaries, e. g. DPI, ElderShield) 4 15 Product License Classification As at 31 March 2017, insurers holding “Normal” licenses contributed 97 per cent of new sales, while the “Defined Market Segments” (DMS) insurers4 made up the remaining three per cent of new sales for 1Q2017. Claims Payout As at 31 March 2017, the life insurance industry paid out S$1.39 billion to policyholders and beneficiaries. Of this amount, S$1.18 billion was for policies that matured. The remaining S$212 million was for death, critical illness or disability claims. Life insurance plays a key role in providing policyholders and their families with peace of mind, knowing that insurance payouts will alleviate the financial burdens arising from sickness, death, or simply, a long retirement. Products Providing Regular Payouts from Retirement Age There was an uptake of 5,092 policies designed to provide regular payout to policyholders during retirement years, with approximately S$40 million of weighted new premiums recorded over the quarter. Such plans accounted for approximately five per cent of the total weighted premiums for 1Q2017. Insurers are increasing efforts to help Singaporeans better plan and prepare for retirement. This is especially critical because of Singapore’s rapidly ageing population which, if not effectively managed, will increase the financial burden placed on our smaller economically active workforce and the government. Singapore has the highest proportion of older residents and the fastest ageing population in South-east Asia, according to the World Bank5. In fact, the number of those aged 65 and above will nearly double from 220,000 in 2000 to approximately 900,000 in 20306. Currently, one in three working adults is not planning for their retirement7. Group Insurance: Total Annual Premiums Inforce Total annual premiums in-force for group insurance business rose by five per cent compared with a year ago, amounting to S$1.03 billion. Assets Contributing to Singapore as a leading insurance hub in Asia, the life insurance industry manages assets of approximately S$173.0 billion, up eight per cent compared with a year ago. Assets of non-investment linked business accounted for S$143.5 billion, while the remaining S$29.5 billion were assets held for investment-linked business. Manpower in the Industry There was a six per cent increase in the number of employed individuals within the life insurance industry in 1Q2017. 14,269 representatives held exclusive contracts with companies that operate a tied agency force. 6,883 individuals were employed by member companies, up from 6,503 staff in 1Q2016. The industry continues to seek talent in all areas, including underwriting and specialised digital technologies. Continued employment opportunities in the life industry contrasts with rising unemployment rates in Singapore, which climbed to 2.3 per cent8 in 1Q2017, and is expected to creep up further this year as the workforce ages and older workers who lose their jobs take longer to find new ones9. LOOKING FORWARD “Moving ahead, the industry is re-defining ‘protection’ with people-centric initiatives that include championing preventive healthcare for a healthier population because prevention is better and cheaper than cure. In this, Singapore's life insurance industry aspires to be the catalyst for change within our nation’s healthcare eco-system,” added Mr Teow. Key initiatives in 2017 include: Launch of a fresh Protection Gap Study Progress updates on industry efforts following the Health Insurance Task Force recommendations - End - Note to Editor: Industry results of 1Q2017 are available at https://www. lia. org. sg/news-room/industry-performance/ In Summary New Business Sales (Weighted Basis) Comparison with Corresponding Period Jan – Mar 2017S$ Jan – Mar 2016S$ Change Single Premium 281.3 million 215.9 million 30% Linked 62.8 million 45.7 million 38% Non-linked 218.5 million 170.2 million 28% Annual Premium 529.7 million 466.2 million 14% Total 811.0 million 682.1 million 19% Comparison with Last Quarter Jan – Mar 2017S$ Oct – Dec 2016S$ Change Single Premium 281.3 million 294.2 million -4% Linked 62.8 million 67.3 million -7% Non-linked 218.5 million 226.9 million -4% Annual Premium 529.7 million 661.1 million -20% Total 811.0 million 955.3 million -15% 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 economy grows 2% in 2016, helped by strong Q4 (17 Feb 2017). Channel NewsAsia. Available at: http://www. channelnewsasia. com/news/singapore/singapore-economy-grows-2-in-2016-helped-by-strong-q4-7586978 3 With effect from 1 January 2016, the MediShield Life premiums has been excluded from LIA statistics. 4 DMS insurers are registered by MAS to conduct only non-CPF business and with minimum policy size. 5 Fast-ageing Singapore, fewer to support aged; Trend worries experts (27 Sep 2013). The Straits Times. Available at: http://www. straitstimes. com/singapore/fast-ageing-singapore-fewer-to-support-aged-trend-worries-experts 6 Singapore feeling impact of rapidly ageing population (1 Jul 2015). TODAY. Available at: http://www. todayonline. com/singapore/singapore-feeling-impact-rapidly-ageing-population 7 1 in 3 working Singaporean adults not planning for retirement: Survey (15 Feb 2016). Channel NewsAsia. Available at: http://www. channelnewsasia. com/news/singapore/1-in-3-working-singaporean-adults-not-planning-for-retirement-su-8175450 8 May Day Rally: Singapore has to work hard to tackle rising unemployment, says PM Lee (1 May 2017). Channel NewsAsia. Available at: http://www. channelnewsasia. com/news/singapore/may-day-rally-singapore-has-to-work-hard-to-tackle-rising-8808356 9 May Day Rally: Singapore has to work hard to tackle rising unemployment, says PM Lee (1 May 2017). Channel NewsAsia. Available at: http://www. channelnewsasia. com/news/singapore/may-day-rally-singapore-has-to-work-hard-to-tackle-rising-8808356
News Room -
Industry Performance
Date Published: 14.02.2017
Strong growth in 2016 amidst challenging macro-economic environment
Life insurance industry drives efforts to combat factors contributing to medical claims escalation. The Life Insurance Association Singapore (LIA Singapore) today announced industry results for the period January to December 2016 (YTD 4Q2016). Total weighted new business premiums1 for YTD 4Q2016 saw healthy growth of a 10 per cent increase compared to the same period in 2015, with increased interest in non-participating products. Compared to the national Gross Domestic Product (GDP) for 2016 of 1.8 per cent2, the industry's growth of 10 per cent is more than five times the rate at which the economy expanded. Total weighted new business premiums amounted to S$3,286.2 million for the year. Dr. Khoo Kah Siang, President of LIA Singapore, said, "The life insurance industry consistently made good progress quarter on quarter, as more Singapore residents took a long-term perspective to financial planning and got better protected. The industry also reached out to claimants or beneficiaries of unclaimed proceeds by launching the LIA Register of Unclaimed Life Insurance Proceeds a year ago. With long-term consumer interests in mind, the industry undertook proactive action to address Singaporeans' concern with escalating healthcare costs through the formation of the Health Insurance Task Force (HITF). Resilient Community Compared to the same period in 2015, the total sum assured for new business rose strongly by 15 per cent, totalling S$117 billion as the industry continues to help individuals better meet their protection needs. In all, new health insurance premiums3 totalled S$241 million for YTD 4Q2016, of which Integrated Shield Plans (IP) premiums and IP riders accounted for 86 per cent (S$208 million). The remaining S$33 million was contributed by other medical plans and riders. In 2016, more than 50,000 Singapore residents took up health insurance coverage primarily through IPs and IP riders. As at 31 December 2016, 2.89 million lives (approximately one in two individuals in Singapore) were covered with total premiums amounting to S$1,416 million. Resilient Economy In the face of Singapore's employment growth in 2016 hitting a 13-year low4, the life insurance industry however experienced an expansion in headcount. As at 31 December 2016, 6,663 individuals were employed by member companies, representing a five per cent increase from 6,371 staff for YTD2015. 14,420 representatives held exclusive contracts with companies that operate a tied agency force. Contributing to Singapore as a leading insurance hub in Asia, the life insurance industry manages assets of approximately S$173.1 billion, up 11 per cent compared with a year ago. Assets of non-investment linked business accounted for S$143.8 billion, while the remaining S$29.3 billion were assets held for investment-linked business. Resilient Future Looking ahead, industry initiatives in 2017 are likely to include consumer education and strengthening the sustainability of the healthcare financing system. Following the HITF recommendations released in October last year, LIA is facilitating the implementation of relevant recommendations by industry players. Industry players continue to work on digital innovation to increase choice and lower costs for consumers. LIA Singapore, along with stakeholders such as the Monetary Authority of Singapore (MAS), signed the Statement of Intent to pledge their support. The election of the Association's Management Committee and officers will be held in early March 2017. OTHER HIGHLIGHTS FOR YTD 4Q2016 Compared to YTD 4Q2015, the industry also recorded: A nine per cent increase to S$1,025.1 million in weighted single premiums: Single premium par and non-par products comprised 78 per cent, the balance 22 per cent were single premium linked products CPFIS-included products comprised 13 per cent; Cash-funded products took the remaining 87 per cent A 10 per cent increase to S$2,261.1 million in weighted annual premium Product Classification Par products accounted for 52 per cent of new sales while non-par products accounted for 34 per cent. Investment-linked products made up the remaining 14 per cent. Distribution Channels The contribution of new business by the different channels of distribution remained consistent as follows: Distribution channel By weighted premium (%) By number of policies (%) Tied Representatives 37 57 Bank Representatives 38 12 Financial Adviser Representatives 21 15 Others (products sold without intermediaries, e. g. DPI, ElderShield) 4 16 Product License Classification As at 31 December 2016, insurers holding "Normal" licenses contributed 97 per cent of new sales compared to 94 per cent in YTD 4Q2015. The "Defined Market Segments" (DMS) insurers5 made up the remaining three per cent of new sales for YTD 4Q2016. Claims Payout As at 31 December 2016, the life insurance industry paid out S$6.07 billion to policyholders and beneficiaries. Of this amount, S$5.23 billion was for policies that matured. The remaining S$835 million was for death, critical illness or disability claims, which represented an eight per cent increase from the same period in 2015. Life insurance plays a key role in providing policyholders and their families with peace of mind, knowing that insurance payouts will alleviate the financial burdens arising from sickness, death, or simply, a long retirement. Products Providing Regular Payouts from Retirement Age In respect of those products that are designed to provide regular payout to policyholders during retirement years, data showed that such plans accounted for approximately five per cent of the total weighted premiums for YTD 4Q2016. A total of 17,927 policies were sold, with approximately S$163 million of weighted new premiums recorded over the year. Group Insurance: Total Annual Premiums Inforce Total annual premiums in-force for group insurance business rose by 0.4 per cent compared with a year ago, amounting to S$979 million. - End - Note to Editor: Industry results of YTD 4Q2016 are available at https://www. lia. org. sg/news-room/industry-performance/ In Summary New Business Sales (Weighted Basis) Comparison with Corresponding Period Jan – Dec 2016S$ Jan – Dec 2015S$ Change Single Premium 1,025.1 million 940.8 million 9% Linked 226.1 million 244.0 million -7% Non-linked 799.0 million 696.8 million 15% Annual Premium 2,261.1 million 2,057.2 million 10% Total 3,286.2 million 2,998.0 million 10% Comparison with Corresponding Quarter Oct – Dec 2016S$ Oct – Dec 2015S$ Change Single Premium 294.2 million 281.9 million 4% Linked 67.3 million 61.0 million 10% Non-linked 226.9 million 220.9 million 3% Annual Premium 661.1 million 550.3 million 20% Total 955.3 million 832.2 million 15% Comparison with Last Quarter Oct – Dec 2016S$ Jul – Sep 2016S$ Change Single Premium 294.2 million 232.8 million 26% Linked 67.3 million 61.2 million 10% Non-linked 226.9 million 171.6 million 32% Annual Premium 661.1 million 575.4 million 15% Total 955.3 million 808.2 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 Source: Channel NewsAsia. (3 January 2017). Singapore’s economy grows 1.8% in Q4; 2016 GDP at 1.8%. Retrieved from: https://www. channelnewsasia. com/news/business/singapore-s-economy-grows-1-8-in-q4-2016-gdp-at-1-8-7530592 3 With effect from 1 January 2016, the MediShield Life premiums has been excluded from LIA statistics. 4 Source: The Straits Times. (27 Jan 2017). Economic uncertainty puts squeeze on job market. Retrieved from: http://www. straitstimes. com/singapore/manpower/economic-uncertainty-puts-squeeze-on-job-market 5 DMS insurers are registered by MAS to conduct only non-CPF business and with minimum policy size.
News Room -
Industry Performance