The Life Insurance Association of Singapore (LIA Singapore) yesterday announced its industry performance for January to December 2023 (4Q23 cumulative), with weighted new business premiums for Q4 2023 increasing from Q4 2022. The year ended with an increase of 14.4% compared to the previous year.
Weighted new business premiums totaled S$4.9 billion ($3.64 billion) in 2023, down 3.9% compared to 2022. The association said in a statement that the decline was mainly due to a decline in single premium insurance business.
New business (personal life and health) – Total weighted premium
|
Weighted criteria
|
2022
|
2023
|
Q4 2022
|
Q4 2023
|
YoY change rate
|
|
|
2023
|
Q4 2023
|
|||||
|
single premium
|
2,345.1
|
1,542.1
|
389.9
|
437.5
|
-34.2%
|
12.2%
|
|
Annual premium
|
2,753.2
|
3,358.9
|
843.0
|
973.3
|
22.0%
|
15.5%
|
|
total
|
5,098.3
|
4,901.0
|
1,232.9
|
1,410.8
|
-3.9%
|
14.4%
|
|
Source: LIA Singapore
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||||||
Despite the difficult macro environment, Singapore’s life insurance industry continues to contribute to narrowing the country’s coverage gap, with total guarantees increasing by 1.9% year-on-year through Q4 2023, of which 37.9% A further 37.3% of representations were matched by financial advisors (FAs).
Health insurance
The number of lives covered by health insurance also increased by 1.9%.Approximately 60,000 more Singaporeans ppermanent rResidents were covered by integrated shield plan (IP) Comparison between the end of 2023 and the same period one year ago. Total 2.93meter Approximately 70% of Singapore residents’ lives are protected by IP and IP treaties. Basic health insurance system run by the government MediShield Life.
Dennis Tan, President of LIA Singapore, said: “Global headwinds, weaker economic growth coupled with geopolitical tensions, rising interest rates and rising inflationary pressures will impact overall demand for life insurance products, particularly in early 2023. Despite these challenges, as the years pass, the life insurance industry continues to recover and show its success. Helping more people to be better protected increases resilience. ”
Usage of both annual and one-off insurance products increased in the fourth quarter
The industry saw an increase in plan usage in the last quarter of 2023. This is reflected in an increase in total weighted new business premiums for annual premium products. Compared to Q4 2022, Q4 2023 increased by 15.5%. This equates to an increase of S$86.4 million, an increase of 9.7% compared to Q3 2023, as Singapore’s life insurance industry continues to adapt to the evolving insurance industry. The needs of Singapore residents.
Single premium products recorded a 12.2% increase in weighted premiums in the fourth quarter of 2023 compared to the same period in 2022. Q4 2023 recorded the only increase in usage of single premium products during the year, with total weighted premiums for single premium products of S. The cumulative total for the fourth quarter of 2023 is $1.54 billion. This can be attributed to persistently high interest rate increases and a volatile macroeconomic environment that has hit consumer investment sentiment and preferences across various financial instruments in the market.
Demand for integrated shield plans (IP) remains strong
New business weighted total premiums for individual health insurance in Q4 2023 were S$441.1 million, an increase of 14.9% in Q4 2023 compared to the same period in 2022. IP rider premiums account for 85%, with the remaining 15% made up of other medical plans and riders. Total new business premiums2 for IP and IP riders in Q4 2023 amounted to S$373.3 million, an increase of 21.9% compared to Q4 2022.
Increase in insurance claim payments
In 2023, the life insurance industry paid out S$13.58 billion to policyholders and beneficiaries, an increase of 16.2% year-on-year.
Of this amount, S$11.76 billion was maturing premiums. The remaining S$1.82 billion was earmarked for death, total disability, permanent disability and critical illness benefits.
Product category
Par products accounted for 30% of total weighted new business premiums, and non-par products accounted for 37%. The remaining 33% were investment-related products.
Distribution channel
New projects from various channels are as follows.
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Distribution channel
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By weighted premium (%)
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By number of policies (%)
|
|
Tie representative
|
31.1
|
36.7
|
|
bank representative
|
32.8
|
9.4
|
|
FA representative
|
31.7
|
27.8
|
|
online direct channel
|
1.7
|
22.1
|
|
Others (products sold without intermediaries)
|
2.7
|
4.0
|
Industry talent
Employment in the life insurance industry increased by 3.5% compared to the same period in 2022. With this, the number of employees in Singapore’s life insurance industry will be 9,737 as of December 31, 2023, and we continue to drive digital transformation initiatives.
During the same period, 13,771 representatives had exclusive contracts with companies that operated affiliated agencies.
I’m looking forward to
“The cost of living is a concern for many people,” Mr Tan said. Singapore and the life insurance industry are committed to finding ways to help local residents address their protection and financial needs. We achieve this through innovation. Things like product design and more efficient business processes.
“We will also take a long-term view and continue to pursue initiatives that ensure the well-being of Singaporeans and support the country’s net-zero transition goals. ”