Life Insurance Industry Results Insurance Industry Results January to December 2017 Questions &...
14
www.lia.org.sg Life Insurance Industry Results January to December 2017 Media Conference | 9 February 2018
Transcript of Life Insurance Industry Results Insurance Industry Results January to December 2017 Questions &...
www.lia.org.sg
Life Insurance Industry ResultsJanuary to December 2017
Media Conference | 9 February 2018
www.lia.org.sg 2
New Business (Individual Life & Health)Total Weighted Premium
Weighted Single Premium is based on 10% of Single Premium
Weighted Annual Premium is based on 100% of Annual Premium with adjustment for premium payment terms of less than 10 years
$million
Weighted Annual Premium
Weighted Single Premium (Non-CPF)
Weighted Single Premium (CPF)
Weighted basis YTD Q4’16 YTD Q4’17 Q4’16 Q4’17
% change from corresponding period in 2016
YTD Q4’17 Q4’17
Single Premium $1,025.1m $1,463.9m $294.2m $563.2m 43% 91%
• Linked $226.1m $395.4m $67.3m $173.8m 75% 158%
• Non-linked $799.0m $1,068.5m $226.9m $389.4m 34% 72%
Annual Premium $2,261.1m $2,624.3m $661.1m $777.3m 16% 18%
Total $3,286.2m $4,088.2m $955.3m $1,340.5m 24% 40%
YTD: Year to date
466.2 562.8 575.4 661.1 529.7 605.0 712.3 777.3
28.631.5 31.6
39.636.6
45.751.8
72.4
187.3250.6 201.2
254.6244.7
220.3301.6
490.8
0
200
400
600
800
1,000
1,200
1,400
Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17
1,340.5
682.1
844.9955.3
808.2 811.0 871.0
1,065.7
www.lia.org.sg
New Business (Individual Life & Health)Total Weighted Premium
3
18%
46%
36%14%
52%
34%
Linked Participating Non-Participating
$1,884m
$739m$464m
$1,713m
$1,109m $1,465m
By Fund
97%
3%
Normal Defined Market Segments
98%
2%$101m
$3,987m
$109m
$3,177m
By Insurer Classification
Defined Market Segments (DMS): Insurers registered with MAS under “Defined Market Segments” are allowed to only conduct non-CPF business and are subject to a minimum policy size.
YTD Q4’17($4,088m)
YTD Q4’15($2,998m)
YTD Q4’16($3,286m)
19%
53%
28%$579m
$1,588m
$831m
94%
6%$170m
$2,828m
www.lia.org.sg
YTD Q4’15 YTD Q4’16 YTD Q4’17
# % # % # %
Total Weighted Premium $2,998m $3,286m $4,088m
Tied Representatives $1,201m 40% $1,217m 37% $1,545m 38%
Bank Representatives $1,098m 37% $1,253m 38% $1,508m 37%
FA Representatives $587m 19% $675m 21% $793m 19%
Others* $112m 4% $141m 4% $242m 6%
Number of Policies 1,044,882 1,140,574 1,266,169
Tied Representatives 629,789 60% 653,690 57% 708,861 56%
Bank Representatives 125,485 12% 133,204 12% 152,464 12%
FA Representatives 123,911 12% 172,764 15% 217,135 17%
Others* 165,697 16% 180,916 16% 187,709 15%
Total Sum Assured $101.2b $116.6b $130.5b
Tied Representatives $50.0b 49% $53.8b 46% $56.7b 44%
Bank Representatives $19.4b 19% $22.6b 19% $24.7b 19%
FA Representatives $28.1b 28% $35.8b 31% $42.2b 32%
Others* $3.7b 4% $4.4b 4% $6.9b 5%
New Business (Individual Life & Health)By Distribution Channel
4
* Products sold without intermediaries e.g. ElderShield
www.lia.org.sg
101,225
116,636
130,490
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Dec'15 Dec'16 Dec'17
5
New Business (Individual Life & Health)Total Sum Assured
$million12%
YTD
www.lia.org.sg
86%
14%
91%
9%
6
Individual Health InsuranceNumber of Lives Covered and Total Premium
IP and Riders Other Medical Plans and Riders
An Integrated Plan (IP) comprises two parts: Part 1 is MediShield Life, run by the CPF Board to cover Class B2/C wards in publichospitals; Part 2 is an additional private insurance coverage, run by private insurers, typically to cover Class A/B1 wards in public hospitals or private hospitals.
With effect from 1 January 2016, MediShield Life premiums are excluded.
$341m
$33m
$208m
$33m
As at Q4’16 Q4’17
Total Premium $1,416m $1,693m
No. of Lives 2.89m 2.96m
In-Force Business
Total Premium:
New Business
No. of Lives:
YTD Q4’16 YTD Q4’17
$241m (Q1-$47m Q2-$56m Q3-$69m Q4-$69m)
$374m (Q1-$66m Q2-$88m Q3-$104m Q4-$116m)
227,851 234,177
www.lia.org.sg 7
New Business (Products Providing Regular Payouts from Retirement Age)Number of Policies and Total Weighted Premium
70%
30%
69%
31%
77%
23%
Total Weighted Premium
No. of Policies
77%
23%
17,981
7,794
$49m
$163m
13,997
6,300
$37m
$126m
No. of Policies:
YTD Q4’16 YTD Q4’17
20,297 25,775
$163m $212mTotal Weighted Premium:
Single Premium Annual Premium
www.lia.org.sg
316.9 318.5 301.0 296.0 299.2 299.2 302.1 302.8
664.8 664.0 671.3 682.7 735.5 755.3 776.0 788.0
0
200
400
600
800
1,000
1,200
Q1 16 Q216 Q316 Q416 Q1 17 Q2 17 Q3 17 Q4 17
Life Accident & Health
8
Group Life & HealthIn-Force
Life
A&H
As at
$million 11%
982.5981.71,054.5
972.3 978.71,034.7
1,090.81,078.1
www.lia.org.sg 9TPD: Total & Permanent Disability
NOP: Number of Policies
Individual Policy Claims Payout & Maturity
Number of Policies and Amount
123 112 112 120 106 128 101 108
94 100 93 96 106 100 116 119
1,839
2,0401,923
1,7901,893 1,858 1,887
1,947
1,4431,539
1,416 1,3801,503 1,463
1,669 1,668
0
500
1,000
1,500
2,000
2,500
0
50
100
150
200
250
300
350
400
450
500
Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17
Death & TPD (Amount) Critical Illness (Amount)
Death & TPD (NOP) Critical Illness (NOP)
Amount ($million) NOPClaims Payout
1,294 1,271 1,340 1,3261,183 1,201
1,028
1,522
36,32237,756 37,970
35,468
29,29927,834
29,75632,689
0
10,000
20,000
30,000
40,000
50,000
60,000
0
1,000
2,000
3,000
4,000
Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17
Amount NOP
Amount ($million) NOPMaturity
227217 217216212 205 212228
www.lia.org.sg 10
1.521.39 1.35 1.31
1.60 1.57 1.54 1.51
0
1
2
3
Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17
%
YTD
Forfeiture Rate = (YTD Forfeitures * 4 / No. of Qtrs Elapsed) / [YTD NB +NB1+NB2+ NB3]
NB1 = New Biz for Reporting Year – 1
NB2 = New Biz for Reporting Year – 2
NB3 = NB in Q3 to Q4 of Reporting Year – 3 if Q=1
= NB in Q3 to Q4 of Reporting Year – 3 if Q=2
= NB in Q4 of Reporting Year – 3 if Q=3
= 0 if Q=4
Forfeiture & Surrender Rates
Forfeiture policies are policies terminated before any cash values have been accumulated
1.81 1.78 1.79 1.77 1.77 1.81 1.75 1.73
0
1
2
3
Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17
%
YTD
Surrender Rate = (YTD Surrender * 4 / Q) / [IF4 * (1 – Q / 4) + IF3 *(Q / 4)]
Q = No. of Qtrs Elapsed
IF3 = Annual Premium in Force, Year of Reporting – 3
IF4 = Annual Premium in Force, Year of Reporting – 4
Forfeiture Rates Surrender Rates
www.lia.org.sg 11
136,478 139,551 143,861 143,503 151,305 156,181 161,406
27,298 27,676 29,281 29,510 31,122 32,067 32,888
0
50,000
100,000
150,000
200,000
Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17
Non-linked Fund Linked Fund
$million12%
As at
* Preliminary
Source: Monetary Authority of Singapore
Total Assets
194,294*188,248
173,013163,776 167,227
173,142182,427
www.lia.org.sg
14,66914,420
14,793
6,3716,663
7,429
5,000
6,000
7,000
8,000
9,000
10,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
Dec'15 Dec'16 Dec'17
No. of Employees
No. of Tied Representatives
No. of Tied Representatives No. of Employees
12
Tied Reps
Employees
As at
ManpowerNumber of Employees & Tied Representatives
www.lia.org.sg
Life Insurance Industry ResultsJanuary to December 2017
Questions & Answers
Term used What it means
Single premium (SP) policy A policy where the customer is required to pay only a one-time premium.
Annual premium (AP) policy A policy where the customer is required to pay premiums on a regular frequency over a period of time.
Total weighted premium A way to measure growth of the life insurance industry by taking into account fluctuations in the total premium from single premium business, which is sensitive to market conditions: Total weighted premium = Total weighted single premium + Total weighted annual premium
Weighted single premium 10% of the amount of single premium.
Weighted annual premium 100% of the amount of annual premium. However, where the premium payment obligation is less than 10 years, an adjustment is made. For example, an annual premium policy with a 7-year premium payment obligation will be reflected at 70% of the amount of annual premium.
Linked fund A fund that pools together premiums paid under investment-linked policies, and invests in a portfolio of assets to achieve the fund's objective. The fund may be managed by the insurer or external fund manager(s). The price of each unit in a fund depends on how the investments of the fund perform. A policyholder may sell his units to take advantage of price gains.
Participating fund A fund that pools together premiums paid under participating policies. A policyholder receives a share of the investment profit made by the life insurer in the form of a "bonus" or "dividend". Bonuses or dividends are not guaranteed as it depends on howthe fund's investments are performing, how many policy claims are drawn from the fund and management expenses incurred.
Non-participating fund A fund that pools together premiums paid under non-participating policies. A policyholder is not entitled to any profits that the fund may make.
Normal insurer An insurer registered with MAS to serve the retail market.
Defined market segment (DMS) insurer
An insurer registered with MAS to only conduct non-CPF business and with certain policy size condition.
Tied representative A person who represents one life insurer, and can advise on the products of this company.
Bank distribution / representative
A person who represents one bank, and can advise on the products of one or more life insurers with which the bank has a distribution agreement.
FA representative A person who represents one Financial Adviser (FA) firm, and can advise on the products of the several life insurers with which the FA firm has distribution agreements.
Sum assured Amount of death benefit.
Integrated plan (IP) It comprises two parts: Part 1 is MediShield Life, run by the CPF Board to cover Class B2/C wards in public hospitals; Part 2 is an additional private insurance coverage, run by private insurers, typically to cover Class A/B1 wards in public hospitals or private hospitals.
Rider An extra benefit that can be bought on top of the basic policy.
Forfeiture Policies terminated before any cash value has accumulated.
Surrender Policies terminated after having acquired some cash value. Commonly, it takes two to three years for cash value to accumulate.
