Singapore's life insurance industry achieved a total of S$2.86bn ($2.16bn) in weighted new business premiums for 1H2024, an increase of 30.4% compared to the corresponding period a year ago, announced the Life Insurance Association, Singapore (LIA Singapore).
The increase in weighted new business premiums aligns with a more positive macroeconomic environment as Singapore’s economy continued to expand, recording higher growth than forecasted in the second quarter of 2024.
Demand for both single and annual premium policies increased in 2Q2024, reflecting the continued prioritisation of savings and protection needs.
In-force premiums for Group Life & Health continued to show steady growth with an 11% increase in 2Q2024 from 2Q2023 to record a total of S$2.40bn to date. Total premiums for individual health insurance also recorded a 7.1% growth in 1H2024, compared to the same period last year.
Focus on protection
The industry saw a boost in demand for both single-premium and annual premium policies in the second quarter.
Single-premium policies increased 32.9% in weighted premiums compared to the same period last year, amounting to S$918.0m in total for 1H2024. Annual premium policies also saw an increase of 29.3% compared to the same period last year, amounting to S$1.94bn in 1H2024.
The industry recorded a total of S$70.2bn in total sum assured during 1H 2024 – a growth of 6.7% over the same period last year.
New Business Sales (Weighted Basis)
|
Weighted basis
|
1H2024
S$ m
|
1H2023
S$ m
|
2Q2024
S$ m
|
2Q2023
S$ m
|
Year-on-Year Change
|
|
1H
|
2Q
|
|
Single Premium
|
918.0
|
691.0
|
414.7
|
349.0
|
32.9%
|
19.7%
|
|
Annual Premium
|
1,937.7
|
1,498.7
|
1,071.1
|
807.5
|
29.3%
|
32.6%
|
|
Total
|
2,855.7
|
2,189.7
|
1,488.8
|
1,156.6
|
30.4%
|
28.7%
|
|
Source: LIA Singapore
|
|
|
|
Integrated Shield Plans (IPs)
Approximately 71,000 Singaporeans and Permanent Residents took up new IPs as of 30 June 2024. In total, 2.9m lives – approximately 71% of Singapore residents – are protected by IPs.
An IP is an optional health coverage provided by private insurance companies which includes the government-run MediShield Life health insurance scheme and additional coverage.
Total new business premiums for individual health insurance for 1H 2024 amounted to S$220.7m, an increase of 7.1% compared to the same period last year. Overall, IPs and IP rider premiums accounted for 85.4% (S$188.5m) and the remaining 14.6% (S$32.2m) comprised of other medical plans and riders in 1H2023.
Claims payouts
Between 1 January 2024 and 30 June 2024, the life insurance industry paid out S$10.96bn to policyholders and beneficiaries, a 82.8% increase compared to the same period last year. Of this amount, S$10.04bn was for policies that matured. The remaining S$927m was for death, critical illness, or disability claims for more than 10,600 policies.
Looking ahead
Mr Dennis Tan, LIA Singapore president, said, “As Singapore’s economy continues to pick up, with GDP forecasted to come in closer to its potential rate of 2% to 3% for this year, the life insurance industry remains cognisant and agile to seize opportunities to grow as we prioritise efforts to meet the protection needs in Singapore.
“Healthcare inflation remains a top-of-mind challenge, as medical costs are projected to rise by 10.7% this year, attributable to multiple factors such as the rising costs of medical treatments and medical advancements, possible over-consumption and over-prescription of medical services, an ageing population to care for, as well as increased staffing costs amid a tight healthcare talent pool.
“As an industry, we remain committed to collaborating with government agencies and the medical fraternity to ensure the continued accessibility of medically necessary treatments. We believe that, together, we can ensure the continued accessibility of quality healthcare in Singapore, while keeping healthcare costs and premiums sustainable.”