LIA Singapore announces stable results
The Life Insurance Association of Singapore (LIA Singapore) recently announced industry results for the period January to June 2015, which showed a total of S$1,352.7 million achieved in new business premiums, a three-per-cent increase over the same period in 2014. The industry achieved three-per-cent growth, reaching to S$964.9 million in annual premium products, and two-per-cent growth to S$387.8 million of single premium products. The LIA noted: “There has been a shift from single premium non-linked to single premium linked products. Given the low interest environment, yields for shorter term non-linked single premium plans may be less attractive to customers.”
Dr Khoo Kah Siang, president of LIA Singapore, commented on the results: “The first half 2015 performance is about level compared to first half of 2014. There is slight growth in both single premium and regular premium business. With relatively low interest rate, sales of traditional (i.e. non-linked) single premium plans dropped while sales of investment linked plans, both single premium and regular premium, picked up amidst the positive but volatile equity market.”
As of the end of June 2015, the life insurance industry paid out a total of S$2.96 billion to policyholders and beneficiaries. Of this amount, S$2.59 billion was for policies that matured and the remaining S$373 million was for death, critical illness or disability claims. On health insurance, meanwhile, approximately one in two individuals in Singapore (2.79 million lives) have health cover, with total premiums amounting to S$1.63 billion as of 30 June 2015.