Financial advisers have overtaken banks as Singapore's largest life insurance distribution channel, accounting for nearly two-thirds of the industry's premium growth in the first nine months of 2026, as investment-linked policies (ILPs) gained market share.
Figures released by the Life Insurance Association Singapore (LIA) on November 12 showed that weighted new business premiums through financial advisers rose 27.9% to S$2.07 billion, representing 37.9% of the market. Banks, which led a year earlier, generated S$1.79 billion, or 32.7%.
The difference was particularly evident in each channel's contribution to industry growth. Financial advisers generated approximately S$452 million of the S$714 million increase in weighted premiums, while bank premiums grew 6.6% and tied representatives recorded an 11.1% increase to S$1.44 billion.
The gains came despite signs of slowing momentum across the broader market. Overall weighted new business premiums rose 15% year over year to S$5.47 billion, but third-quarter growth eased to 4.2%. Quarterly premiums reached S$1.84 billion, down 4.3% from the previous quarter.
Much of the industry's growth came from ILPs, which combine insurance protection with investment exposure. Weighted premiums from these products rose 22.6% to S$2.51 billion, lifting their share of new business to 46%, from 43% a year earlier and 37% in 2024. By the third quarter, ILPs accounted for nearly half of all weighted new business premiums.
The growing prominence of these products provides context for the advisory channel's expansion, although the figures do not establish how much of its growth came directly from ILP sales.
"The growing share of investment-linked policies suggests that more consumers are placing emphasis towards savings and investment priorities, alongside meeting their protection needs. For some, access to professionally managed funds and financial advice may be part of the appeal,” LIA Singapore president Wong Sze Keed said.
The shift toward investment-oriented insurance also comes as the Monetary Authority of Singapore (MAS) prepares to strengthen oversight of ILP sales.
In a November 4 parliamentary response, MAS confirmed plans for standardized Product Highlights Sheets covering ILP features, risks, fees and charges. It also emphasized advisers' responsibilities to assess suitability and explain promotional incentives, including potential losses from early surrender.
The measures build on a May 2026 regulatory review that confirmed plans to classify ILPs as complex products, with further legislative amendments to follow.
Beyond premium growth, the distribution figures also show how heavily Singapore's life insurance market continues to rely on intermediaries. Financial adviser and tied representatives together facilitated 723,763 new policies, accounting for 79.2% of purchases, up from 75.5% a year earlier.
Tied representatives remained the largest channel by policy count, with 362,440 policies, narrowly ahead of financial advisers at 361,323. Banks accounted for 10.9% of new policies, while online direct channels represented 7.5%.
Meanwhile, digital distribution lost ground. Online policy sales fell 29.5% to 68,842, while weighted premiums declined 21.2% to S$52 million, representing just 1% of industry sales. Although the figures reinforce the dominance of intermediary-led distribution, they do not establish whether customers are actively shifting away from online purchases.
Despite higher premiums, total sum assured under new individual life and health policies fell 3.6% to S$110.4 billion, while the number of new policies edged up to 913,393 from 906,092. This suggests that premium growth has not been accompanied by a corresponding increase in new death benefit coverage, although the figures do not identify the reasons for the decline.
Separately, life insurers paid out more than S$15 billion in claims and maturity benefits during the nine-month period. Maturing policies accounted for S$11.15 billion, or approximately 74% of the total, while individual health claims reached S$2.23 billion.
Health claims also continued to rise, with Integrated Shield Plan and rider payouts increasing 6.7% quarter over quarter to S$742 million in the third quarter. Approximately three million people remained covered by these plans as of September.
