POSTED: 14 May 2013 1:55 AM
Article from http://www.channelnewsasia.com/news/business/singapore/
Singapore's life insurance industry has seen a 9% jump in first-quarter sales from a year ago. Weighted sales totalled S$561.8 million, coming on the back of strong growth in regular premium products.
SINGAPORE: Eighty-two per cent of life agents with major insurers have passed an exam qualifying them to sell Investment-Linked Life Insurance Policies (ILPs), according to the Life Insurance Association, Singapore.
This comes as a June 30 deadline on new testing requirements looms.
Singapore's life insurance industry has seen a 9 per cent jump in first-quarter sales from a year ago.
Weighted sales totalled S$561.8 million, coming on the back of strong growth of 19 per cent in regular premium products, which totalled S$428.9 million. But that rise was countered by lagging sales for single premium products, which fell 15 per cent on-year to S$132.9 million.
The Life Insurance Association's president, Annette King, said the industry has sustained a level of growth despite a slowing economy.
This comes as the industry gets ready to meet new testing requirements implemented by the Monetary Authority of Singapore (MAS) last year.
Among them is a test to qualify financial advisors and insurance agents to sell ILPs.
If they do not pass, agents will be limited to the sale of non-complex life insurance products like term policies, whole life plans and endowment plans.
Dr Khoo Kah Siang, deputy president of the Life Insurance Association, said: "The exams have actually helped to increase the professionalism of the advisors, in terms of them being able to provide the advisories for the more complicated products.
"So in that sense, the exams will help increase the level of professionalism for the industry and the consumer. It will benefit the consumer in the long run."
An MAS survey conducted in February showed that 70 per cent of financial advisory representatives have passed the test - known as Module 9A - but only 66 per cent working for insurers have passed.
The Life Insurance Association said eight in 10 agents with major insurers have now cleared the test, as of 2 May 2013.
Ms King said the exams won't have an impact on industry revenues.
She said: "Singaporeans still need and seek advice and 80 per cent of people say that having quality advice is instrumental in their decision around insurance.
"So more qualified professionals is a good thing and that we continue to see a growth in our industry with people predominately driven by advice, and I think we will continue to see that."
Analysts have speculated that some advisors who do not pass the exam will leave the life insurance industry.
- CNA/ms
Toni Waterman
POSTED: 14 May 2013 1:55 AM
Article from http://www.channelnewsasia.com/news/business/singapore/
