The Life Insurance Association(LIA) Singapore just published its latest findings from the Singapore insurance industry on 7th August 2023.
Skipping ahead most of the figure and technical stuff, these are the key findings:
1.) Narrowing gap on protection
As at 30 June 2023, 2.92 million lives (approximately one in two individuals in Singapore) are insured. Integrated Shield Plans (IP) premiums and IP riders accounted for 90 percent (S$139 million) of the total Health insurance premiums collected.
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2.) More making preparations for retirement
By 2030, there will only be two working adults supporting one retiree, as compared to about five per retiree (2023). This means retirement planning is an ongoing concern for both pre-retirees and their children.
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.
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3.) Shifting Business Model
Comparing the same period to 2023, Market share in Sum Assured for tied representatives (Agents) fall from 51% to 43%. Financial Advisors (Independent) increased from 25% to 30%. The number of new policies falls for tied representatives (Agents) fall from 61% to 55%, while Financial Advisors (Independent) increased from 11% to 17%. Bank representatives figures remain fairly consistent.
This shows that generally Singaporean are looking to independent financial advisors compared to agents when it comes to new health and wealth planning business. Part of this shift may be due to consumers looking to compare insurance policies to get the best according to their financial needs and goals.
4.) Record growth in the insurance industry
A total of S$1,682.0 million in weighted new business premiums ending for the first half of 2023. This can be considered as a positive development despite the current economic uncertainties, the ageing population and a soft labour market. The LIA also noted an 8% increase in the number of employed individuals within the life insurance industry in 1H2023.
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