Singapore’s life insurance industry experienced a significant boost in Q1 2024, with nearly S$1.4 billion in weighted new business premiums—marking a 32.2% year-on-year increase. This growth represents the strongest first quarter performance since the onset of the Covid-19 pandemic.

According to the Life Insurance Association Singapore (LIA), the rise in single-premium policies contributed to this growth, soaring 46.4% to S$500.4 million for the quarter. The LIA attributed this trend to a less volatile macroeconomic environment as Singapore’s economy shows signs of recovery.

Annual premium policies also saw a 25.2% increase in total weighted premiums, reaching S$866.5 million, indicating a sustained prioritization of protection needs among consumers. Sales of non-participating products surged by 42%, further emphasizing this trend.

Dennis Tan, LIA president, remarked, “The life insurance industry is starting the year positively by focusing on narrowing the nation’s protection gap while fostering sector growth.” He noted that, despite ongoing macroeconomic concerns, the industry remains agile in responding to consumer needs.

Integrated shield plans (IPs) are a key component of health insurance coverage, with LIA reporting an additional 35,000 Singaporeans and permanent residents covered by IPs as of the end of March 2024. Total new business premiums for individual health insurance amounted to S$98.6 million, reflecting a 5.3% increase compared to the previous year.

IPs and their riders accounted for 82.9% (S$81.7 million) of individual health insurance premiums, while other medical plans contributed the remaining 17.1% (S$16.9 million). However, LIA acknowledged that medical inflation continues to pose challenges, necessitating collaborative efforts within the healthcare ecosystem.

In Q1 2024, the life insurance sector paid out slightly more than S$5 billion to policyholders and beneficiaries—a staggering 94.6% increase from the prior year. Of this, approximately S$4.6 billion was disbursed for matured policies, driven primarily by single-premium policy maturations.

The remaining S$463 million was allocated for claims related to death, critical illness, or disability. Tan referenced forecasts from the Monetary Authority of Singapore, which suggest stronger growth for the finance and insurance sector in the future.