Singapore's life insurance market has been forecast to post stable growth through to 2016, with experts predicting it to record a compound annual growth rate (CAGR) of 4.7%. This increase will be driven by the positive economic development in Singapore.
The industry put in a strong performance in 2011, with the Singapore Life Insurance Association (LIA) reporting that on a weighted basis, total new premium income came in at S$2.007 billion ($1.6 billion), up 21.6% on the S$1.651 billion recorded in 2010.
The industry's performance in 2011, points to the fact that the market remains in a strong position. The economy as well as consumer sentiment went through uncertain times during 2011, and it's good to note that the life insurance industry has remained resilient.
The rise in premium income marked the second year of recovery following the slump in new business in 2009. In that year, weighted new premium income fell by 17.5% compared with 2009 to S$1.41 billion.
Singapore's population is aging rapidly, and the older age group accounted for 9.9% of the country's total population in 2011. This is expected to grow at a rapid rate of 5.8% annually from 2012 to 2020, which in turn will lead to a boost in the life insurance market.
Demand for life insurance products is expected to grow rapidly due to the low interest rates offered by local banks on saving products, offering scope for investment-linked insurance products.
For more information on Singapore's life insurance market, see the latest research: Singapore's Life Insurance Market Report
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