The Life Insurance Association, Singapore (LIA Singapore) has released industry results for the first quarter of 2020, bannered by 20% growth in sum assured, for a total of SG$34.6 billion.
According to a statement from the association, Singapore’s life insurance industry recorded SG$965.8 million in weighted new business premiums for the first quarter of 2020, a 10% increase from the same period in 2019.
Overall, single premium business recorded a 31% quarter-on-quarter increase in weighted single premiums to SG$293.4 million, which was attributed to insurers’ new product launches and associated promotional activities. Single premium par and non-par products comprised 73% of this amount, while single premium linked products made up the remaining 27%.
Annual premium policies recorded a steady 3% year-on-year increase. This amounted to SG$672.4 million in total weighted annual premiums.
Employment in Singapore’s life insurance industry rose by 4%, as a result of 359 net new hires, compared to the corresponding period in 2019. This brings Singapore’s life insurance industry’s workforce to 8,668 employees, as of March 31. There are also 14,604 representatives that held exclusive contracts with companies that operate a tied agency force as of that date.
“The industry continues to make headway in bridging protection gaps in the first quarter as more consumers take action to secure their financial future in view of COVID-19’s drastic impact on global and local markets,” said Khor Hock Seng, president of LIA Singapore. “However, with circuit breaker measures, climbing unemployment and an impending recession, the life insurance industry may see the knock-on effect in the coming quarters.
“Singapore’s life insurance industry remains resilient, united, and committed to providing support for customers and our workforce during these challenging times. We will continue working closely with regulators to facilitate support measures effectively and efficiently.”