However, new business sales increased by 12.8% in the quarter.
Singapore life insurance new business weighted premiums fell 5.9% to $3.87 billion in the third quarter of 2022 from a year ago, according to a report by the Life Insurance Association of Singapore.
Sales of new policies, however, increased by 12.8% to 1.48 million in the third quarter. Online sales of new policies climbed to 603,116 in Q3 2022 from 370,528 in Q3 2021. These online purchases totaled $106 million in weighted premiums, or 2.7% of new weighted premiums in the quarter .
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Adoption of annual premium products increased 7.2% in Q3 2022 compared to Q3 2021, representing a $48.9 million increase in weighted new business premiums. This narrowed the gap between Q3 2022 year-to-date (YTD) at $1.91 billion and Q3 2021 year-to-date at $2.07 billion.
Single premium products, however, saw a 31.7% drop in weighted premiums in the third quarter compared to a year ago. This translated into a 3.9% year-over-year decline in weighted premiums during the quarter. The decline is mainly attributed to volatility in global equity markets which affected investment-related products and rising interest rates which intensified competition for short-term endowment products with other financial products on the market.
Meanwhile, total new business premiums for individual health insurance for the third quarter of 2022 were $255.8 million. Overall, PIs and PI rider premiums accounted for 84.5% ($216.2 million) and the remaining 15.5% ($39.6 million) comprised other medical plans and riders .
The IP addresses covered around 40,000 more Singaporeans and permanent residents compared to the same period a year ago. A total of 2.88 million lives – about 70% of Singapore residents – are protected by IP addresses, which provide coverage in addition to MediShield Life.
Between January and September 2022, the life insurance industry paid $8.71 billion to policyholders and beneficiaries, an increase of 14.8% over the same period last year. Of this amount, $7.57 billion was for maturing policies. The remaining $1.14 billion was for death, total and permanent disability and critical illness claims.
According to Khor Hock Seng, Chairman of LIA Singapore, geopolitical uncertainty, volatile and uncertain macroeconomic environment and sustained inflationary pressures associated with the rising cost of living have impacted the overall demand for health insurance products. life in the third quarter of 2022.
“Our immediate priority is to support individuals and families in Singapore as they review their long-term protection and financial priorities, especially during these challenging times. The recent inclusion of a consolidated view of insurance policies on the Singapore Financial Data Exchange (SGFinDex) will also enable us to play a greater role in assisting them with financial planning,” added the Chairman.