The Life Insurance Association Singapore (LIA Singapore) announced 2014 industry results:
Total sum assured for new business is S$88.7 billion, increased by 7% compared to 2013.
S$2,788.8 million in weighted new business premiums.
23% increase in sales of single premium products, totalling S$860.8 million.
40% sales increase of new single premium participating (“par”) products.
Weighted annual premium sales slowed by 8% to S$1,928.0 million when compared to 2013. 2013 saw a spike in premiums as a result of the re-pricing of government-program Integrated Shield Plans (IPs). Weighted annual premium sales have stabilised since Q1 2014.
As at end December 2014, the life insurance industry paid out S$6.79 billion to policyholders and beneficiaries: S$6.19 billion for policies that matured, and S$602 million for death, critical illness or disability claims. Death, CI and disability showed a 13% increase from 2013 – an indication that the industry is providing increased protection to the Singapore market.
On health insurance, approximately one in two persons in Singapore (2.75 million lives) has health cover with total premiums amounting to S$1.6 billion as at 31 December 2014.
Total premium income from new health insurance premiums in 2014 is S$266 million, 42% lower than 2013.
"Singapore Parliament has passed the MediShield Life Scheme Bill into law, officially introducing universal health insurance in Singapore on a national scale. As we gear up for the launch of MediShield Life at end 2015, LIA Singapore and Integrated Plan insurers will continue to work in close collaboration with the Government to further improve public education on health insurance and how MediShield Life and IPs work, and their relationship with each other. The insurers are also developing the standard B1 plan jointly with the Ministry of Health (MOH)."
"To allow for a smooth transition, the five IP insurers have committed not to increase the top-up portion of IP premiums for plans covering Class B1 and A wards of public hospitals for one year following the implementation of MediShield Life. Supporting the cost management efforts for IP premiums, IP insurers will collaborate with policymakers and relevant bodies to improve price transparency of professional fees within the healthcare industry, review and apply global pricing benchmarks, as well as leverage data analytics to allow for better scrutiny of unusually high healthcare bills."
Also, LIA Singapore is working with the Monetary Authority of Singapore (MAS) to study the impact of the Risk-based Capital 2 (RBC2) framework on the industry and its solvency. LIA-MAS team plans to launch the Web Aggregator and Direct Purchase Insurance (DPI) products in 2015.
Source: http://www.lia.org.sg/node/4082
