Newly elected President for 2023 – 2024, Mr Dennis Tan (on the right) with Guest-of-Honour, Mr Marcus Lim, Assistant Managing Director of the Banking and Insurance Group, Monetary Authority of Singapore (on the left).

"Amidst the challenges brought about by the pandemic and the volatile macroeconomic environment, the life insurance sector has remained resilient. In 2023, we will focus our efforts on supporting consumers in their financial planning journey and identifying their protection gaps through our protection gap study. At the same time, we will continue our digitalisation efforts and play our part in supporting the government's sustainability agenda," said Mr Dennis Tan, President of LIA Singapore, in his opening address at the luncheon.

This was followed by a speech by Guest-of-Honour, Mr Marcus Lim, Assistant Managing Director of the Banking and Insurance Group, Monetary Authority of Singapore (MAS), who highlighted the importance of the industry maintaining public trust through managing financial and non-financial risks well, and by treating customers right. He also urged the industry to continue to push ahead with its efforts to address environmental risk.

The Management Committee, comprising eight members, have identified the following top priorities for the term office, namely:

• Identifying and developing key initiatives to bridge Singapore's protection needs and financial gaps, especially through the nationwide protection gap study

• Continuing digitalisation efforts in the life insurance sector to enhance the digitalisation journey for all stakeholders including the wider public

• Supporting the nation's sustainability agenda through sustainable investing and green solutions

With 2023 being the first endemic year since Singapore reopened its borders and transitioned towards living with COVID-19, the pandemic has reminded consumers of the importance of ensuring that they are well protected. LIA Singapore will release findings of the nationwide protection gap study in the coming months. This is a study conducted once every five years to better understand and identify various protection gaps that will help in the development of key initiatives that meet individuals' mortality and critical illness protection needs.

Amidst the rising cost of living and inflation, the life insurance industry will also continue to roll out people-first products and services that support consumers in their financial planning journey.

Continuing digitalisation efforts in the life insurance sector

The pandemic has accelerated the adoption of digital tools across the life insurance sector and transformed the way insurers and consumers interact with one another. With increased demand for digital services, life insurers will continue to work with its partners and the MAS to ensure the seamless use of digital tools and solutions that enhance the digitalisation journey and experience for consumers.

Supporting Singapore's sustainability agenda

As a Strategic Partner of the Green Finance Industry Taskforce (GFIT), LIA Singapore will continue to work with key partners to support sustainable investments and develop more green financial solutions.

Industry continues to show resilience and stability

Despite the macroeconomic headwinds, the life insurance industry continues to recover from the pandemic and recorded a total of S$5.10 billion in weighted new business premiums^[1], a dip of 5.2% as compared to a year ago, mainly due to a drop in single premium business. The results also reflected an increase in demand for protection-focused policies in 2022, as uptake in total weighted new business premiums for Annual Premium plans recorded a 16.0% increase in Q4 2022 compared to Q4 2021.

Total weighted new business premiums for Individual Health Insurance for YTD Q4 2022 was at $360.2 million – consistent with the previous year. Total new business premiums^[2] for Integrated Shield Plans (IPs) and IP riders for YTD Q4 2022 amounted to S$306.2 million, a 2.5% increase compared to YTD Q4 2021, highlighting how IP remains a priority health insurance product for Singaporeans.

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References

1. ^{^} Media OutReach (www.media-outreach.com)