In fact, the surge in the industry came in Singapore with S$832.2million new business premiums in the country. So what has led to the growth in interest in the area and is there anything we can learn from here?
The progress in Singapore has largely been linked to the sale of non-linked weighted single premium plans. Indeed, during the fourth quarter of last year, sales of single-premium policies leapt by 28 per cent: reaching $$281.9million. Meanwhile, weighted single premium linked plans went up by three per cent – increasing to S$61million.
Over the course of the year, there was an eight per cent increase year-on-year with the total reaching $3billion.
According to Khoo Kah Siang, the Life Insurance Association Singapore president, the industry was able to grow across all business areas. The country also has a Direct Purchase Insurance scheme which allows plans to be bought without requiring financial advice – and this brought in around S$550,000 from its launch in April, 2015.
By the end of December, the industry had paid out a total of S$5.97billion to beneficiaries and policyholders: from this, S$5.2billion went to policies that had matured. Its surrender rate did rise, however: up to 2.19 per cent, ahead of 1.82 per cent just a year ago.
The life insurance industry enjoyed an eye-catching nine per cent growth year-on-year during the fourth quarter of 2015: but it wasn’t here in Canada.