The sale of life insurance in the year 2015 has crossed SGD 100 billion, marking an immensely healthy growth for this product across all business types and hinting at a higher cost of living in Singapore. According to the president of LIA (Life Insurance Association) Singapore, Khoo Kah Siang, this new protection cover of SGD 101.2 billion represents an increase of 14 per cent in the new business sum that has surpassed the SGD 88.67 billion mark of 2014.
2015 has been one of the most purposeful years for life insurance products on the island that embodied key implementation products as a result of the FAIR initiatives (Financial Advisory Industry Review) that included DPI products (Direct Purchase Insurance) and compareFIRST amongst others. The DPI products that were launched in the month of April, 2015 drew an approximate amount of SGD 550, 000 in weighted new premiums with a huge chunk coming in from term insurance plans.
Dr. Khoo reiterated that the LIA will continue its working relationship with the regulator to further enhance the disclosure of policy details such as investment returns and bonuses. Also, the details of the standard class B1 Integrated Shield plan is to be announced shortly.
19th February 2016
Two insurance companies are now jointly offering life insurance policies to people infected with the human immunodeficiency virus (HIV). These insurance companies have recognized that the life expectancies of such people is quite similar to those of people who are not infected by this deadly virus. Hence, the companies decided to offer life insurance coverage to such people. Earlier HIV infected individuals were not offered with life insurance coverage as it was believed that their life expectancies are lower than that of uninfected people.
These new insurance plans for HIV infected individuals will be offered by the financial company AEQUALIS in partnership with Prudential Financial Incorporated, one of the largest insurance companies in the world. The customers who qualify for such unique life insurance plans will be offered with the same standard plans that are offered to regular customers. Although these policies will not be very cheap, they will neither be prohibitively expensive as well and so the customers will find these policies quite affordable.
Studies conducted by researchers in 2013 found that people who are diagnosed with HIV at the age of 20 can actually live for another 50 years if they start their treatment immediately and are offered with the right treatment. It is likely that other companies will also follow suit and offer life insurance policies to HIV infected individuals in the near future.
02nd December 2015
Zurich, the life insurance company, will not accept any new applications for its life insurance policies from Tuesday, Dec 1, 2015. The company is trying to wind down its life insurance business in Singapore as its performance has not been up to the mark. The 2 units of the company that will be affected by this decision are Zurich International Life Singapore and Zurich Life Insurance Singapore. Even though the insurance company is shutting down in life insurance business in the city, it will continue with its general insurance business in Singapore.
The company is planning to prioritize its investments so that it can reap maximum benefits of its products and grow its assets in the long run. Zurich insurance will retain its core employees and its customer support team so that the existing customers are able to enjoy the same level of service that they have enjoyed from the company so far. Besides, the benefits offered by the existing policies and the terms and conditions associated with them will not be affected by this decision of the company. The general insurance policies of Zurich have been able to woo customers but the life insurance policies of the company did not perform as expected as so the company will stop offering them in Singapore.
30th November 2015