The life insurance industry of Singapore grew by 10% in terms of total weighted new business premiums for 2016, fuelled by a strong surge of sales in the fourth quarter.
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The strong performance is demonstrated by the total sum assured for new business, which rose by 15% to SGD117 billion, according to the Life Insurance Association (LIA) of Singapore, which announced its quarterly results on Tuesday.
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For the fourth quarter of 2016, total weighted new business premiums reached SGD955.3 million, up 15% year-on-year. This was boosted by annual premium sales growing 20% to SGD661.1 million while weighted single premium products posted a 4% increase, reaching SGD294.2 million.
Banks remained as the top distribution channel for life insurance products, as SGD1.25 billion or 38% of total weighted new business premiums last year passed through banks. Tied agents were in second place at 37%, while financial advisers brought in 21%.
Direct insurance distribution such as ElderShield and online sales, where policies are sold without intermediaries, contributed only 4% of new business.
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