According to Life Insurance Association (LIA), the Singapore life insurance industry recorded 38% increase in new business in Q1 2009. Does this signal improved sentiments about the investing climate or a growing job security of consumers to commit to longer term savings?

LIA report 2nd Q 2009

Compared to previous quarter single premium sales (investments and short term endowments) increased by 39% and regular premium sales (regular savings and protection) increased by 37%).

A closer look at contributing numbers reveal a lop-sided recovery both of investing sentiment and the sense of financial or job security. This reflects a sense of caution still for most investors. There is however significant improvement in just the last quarter.

Though the revenue for most financial advisers or agents probably peaked in 2007/2008, the above table reflects a stable increase in annual premiums reflecting the acceptance of life insurance for protection. This is also revealed in the average sum insured that’s steadily going up over the years.

If you have a look at the population statistics as well, you can also see that the increase in new premiums collected is also affected by the gradual increase in population growth and income levels. Add that to the pool of new entrants to the job market, you have a thriving industry that’s just recovering from a bad patch.

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