Weighted new business premiums spike 13% to $1.52b in H1

Market volatility pushed consumers to risk-averse options.

The life industry raked in about $1.52b in weighted new business premiums in the first half of 2016, reflecting a 13% YoY jump.

According to latest figures by the Life Insurance Association Singapore (LIA Singapore), the preference for non-linked premium products over linked products stayed consistent across H1 against the backdrop of global market uncertainty.

In addition, weighted single premiums spiked 28% to $498m during the half-year. Of this, single premium par and non-par products comprised 80%, while CPF Investment Scheme (CPFIS)-included products comprised 12%. Weighted annual premiums also grew 6% YoY to $1.02m in H1.

The total sum assured for new business climbed 15%, totalling $50.8b, compared to the same period in 2015.

LIA Singapore reported that the industry's significant Q2 growth bolstered the robust H1 results. This is due to a spike in uptake of single premium non-linked products over single premium linked products as consumers opt for more risk-averse options amidst the current market volatility.

The uptake of Integrated Shield Plans (IPs) and IP riders also surged in Q2, compared versus Q1 following the introduction of MediShield Life in November 2015.

New health insurance premiums surged to $106m in H1, reflecting a 25% rise in take-up from the previous quarter. LIA Singapore noted that a chunk of this comes from new sales.

Overall, IP premiums and IP riders accounted for $89m of new health insurance premiums for H1, with other medical plans and riders chipping in the remaining $17m.