SINGAPORE (Nov 7): There has been a significant uptake in the number of retirement policies in Singapore in the first nine months of 2019, according to data released Thursday by the Life Insurance Association, Singapore (LIA Singapore).

As at end-September, the number of retirement policies purchased surged 57% y-o-y to 38,622. Weighted premiums for retirement policies in 9M19 came up to $356 million, accounting for 12% of total weighted premiums in the period.

The increased uptake of retirement policies among Singaporeans comes amid increasing longevity and exposure to chronic illnesses.

Overall, Singapore’s life insurance industry recorded a total of $3 billion in weighted new business premiums from January to September, some 4% lower than the corresponding period last year.

Khor Hock Seng, president of LIA Singapore, says the decline in total premiums is in line with a fall in the nation’s economic performance.

However, he notes that despite the dip in sales, total sum assured for new business increased by 1% y-o-y to $103.1 billion.

“The ongoing economic volatility has inevitably impacted the first three quarters’ performance for the life insurance industry. However, the Association and member companies remain steadfast in our efforts and commitment to provide better protection for customers – reflected by the increased total sum assured,” says Khor.

“This is especially crucial at a time when there is a growing cohort in the population of older people and increasing rates of chronic medical conditions among both the young and old,” he adds.