Singapore's life segment posts 2% drop in Q3 weighted new premiums

Total weighted premiums hit S$1.33b.

Singapore’s life insurance industry recorded a 2% YTD slip in weighted new business premiums in Q3 to S$2.99b, but new business premiums skyrocketed 90.6% in the same quarter.

Q3 total weighted premiums reached S$1.33b, a significant S$629.5m more than the $695.1m recorded in Q2. The total sum assured for new business rose 13% YoY, amounting to S$116.2 billion for YTD 3Q2020.

Sales of annual premium (AP) products slipped 17%, amounting to S$1.77b in total weighted annual premiums. The downward trend is expected to continue for some time until the economy further strengthens. On the other hand, sales of single premium products rose 36% YoY in weighted premiums amounting to S$1.21b in total.

Total new business premiums for individual health insurance reached S$273.1m YTD in Q3. Overall, IPs and IP rider premiums accounted for 87% or S$238.3m, and the remaining 13% ($34.8m) consisted of other medical plans and riders.

Moreover, 48,000 more Singaporeans and Permanent Residents were covered by IPs and riders as of 30 September. In total, 2.81 million, or around 69% of Singapore residents, are protected by IPs and riders, which provide coverage on top of MediShield Life.

Employment in the life industry rose by 4% versus the corresponding period in 2019, with 357 net new hires. This brings Singapore’s life insurance industry’s workforce to 8,801 employees as of end-September.

New hires have primarily been attributed to insurers expanding their IT and operations teams as well as steady hiring in project and product management roles. In the same period, 15,286 representatives held exclusive contracts with companies that operate a tied-agency force.