August 09, 2010 | BestWire Services
Singapore's life insurance industry saw a rebound in new product sales for the first half of 2010, with a 28% surge in total weighted new business premiums to S$671 million (US$492 million).
"Backed by strong economic conditions and positive market sentiments, sales were robust for all products," said the Life Insurance Association of Singapore. Sales of new regular and single premium insurance rose 26% and 36% to S$518 million and S$2.09 billion, respectively, in the first half.
Health insurance increased 10% to S$77 million in new premiums as a result of increasing consumer awareness of health care protection and rising medical costs, according to the life insurance trade group.
Investment-linked insurance accounted for 30% of life insurance sales in the first half, up 6% from the previous year, supported by improving market sentiments.
"We expect to build on this momentum into the second half and close the year on a high note," said Tan Hak Leh, president of the life insurance association, in a statement.
In Singapore, the Ministry of Trade and Industry said the country's gross domestic product is expected to increase between 13% to 15% for 2010, up from the previous forecast of between 7% to 9%. A strong GDP growth of 16.9% in the first quarter contributed to the upward economic projection, supported by growth in manufacturing, construction and services industries.
However, the trade ministry said it expects "a more subdued outlook" for the second half of 2010 due to weak global economic conditions. Sluggish demand in the United State and European Union have lowered expectations for manufacturing output in Asian economies, according to the ministry.
The life insurance association said Singapore's life insurance industry, which rebounded from a low in 2009, "looks positioned to sustain robust sales for the rest of the year."
In the first quarter of 2010, the life insurance sector managed assets of about S$111.1 billion, up 22% from the previous year. Assets of non-linked insurance accounted for S$87.1 billion and investment-linked policies represented S$24 billion.
In Singapore, the life association said tied agency "contributed to the bulk of new business," accounting for 57% of weighted new business sales in the first half. The distribution shares of new business were 24% for bancassurance, 14% for financial advisers and 5% for direct sales.
(By Iris Lai, Hong Kong bureau manager: Iris.Lai@ambest.com)
From insurancenewsnet.com published on August 09, 2010 | BestWire Services
