SINGAPORE’S LIFE INSURANCE INDUSTRY DOWN IN FIRST QUARTER

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This amounted to a total of US$790m (S$1.05b) in the January to March period. For single-premium products, it also fell to US$267.1m (S$355.7m) in Q1, 46% lower than the value reported in Q4 2022. Amidst the country’s sluggish economic growth during the first quarter of the year and apprehensions about a possible technical recession looming over Singapore in 2023, the decline in demand for singlepremium products can be linked to the turbulent macroeconomic conditions he value of weighted new business premiums in Singapore fell by 13.6% in the first three months of 2023 compared to last year, according to data released by the Life Insurance Association of Singapore (LIA).and mounting interest rates in an intensively competitive market, said LIA.

In contrast to the downward trend, the take-up of annual premium products jumped 24.7% QoQ to US$520m (S$692m) in total weighted premiums.

In the first quarter of 2023, tied representatives played a pivotal role in obtaining a significant US$9.2b (S$12.3b) sum assured, which accounted for 40.3% of the total sum assured in the period.

Financial advisory representatives also made a notable contribution, securing US$7.8b (S$10.4b) in sum assured, which represented 34.1% of the total sum assured for the same period. The insurance industry recorded a total of US$30.5b (S$23b) in sum assured during the first quarter.

This is so that they can understand the needs of underserved customers and make the right strategic partnerships to increase accessibility of consumers to insurance products.

“By making L&H insurance more affordable, available, and accessible, individuals and households are better equipped to withstand the financial challenges that occur when a primary breadwinner passes away or when they incur high costs of healthcare treatments,” said Julien Descombes, head of Swiss Re Institute’s life and health products reinsurance.