life insurance industry performance up to 3rd Qtr 2012

in a media statement released today, the lia (life insurance association of singapore) reported that the life insurance industry achieved a total of $1,608.1 million in weighted* new business premiums for the first nine months of 2012 which saw a 10% improvement over the corresponding period in 2011. but single premium business recorded a drop of 10% at

$447.3 million with 14% comprising CPF-funded sales.

*   The weighted new business premium figure is calculated as follows:
    10% SPI + 100% API with adjustment for premium payment terms of less

    than 10 years.

the tied channel continue to dominate with 44% of the new business with the bancassurance taking another 37% and 15% of the pie going to financial advisers and the balance of 6% to the other channels. 

my comments:

as usual, the bulk of new sales came from par products which accounted for 52% of new business with non-par taking 29% and investment-linked products making up the balance with 19%.

as if to emphasise the status quo of the population being under-insured, the bulk of claims or more than 93% of $4.20 billion were paid for policies that matured while only $313 million was paid in respect of death, critical illness or disability claims.

for the kyc form, the 4 options of:

1.  full advice

2.  partial advice

3.  product advice and

4.  no advice 

has been replaced with the following (since Aug 01, 2012):

1. Comprehensive Planning
2. Specific Need(s) Planning
3. No Needs Analysis Purchase