In the previous article, we looked at the observations of a 38% increase in premiums collected compared to the 1st quarter of 2009. There are actually two other areas which bears taking a look at in the LIA Insurance Industry Report 1H 2009.
| Distribution Channels |
1H 2005 |
1H 2006 |
1H 2007 |
1H 2008 |
1H 2009 |
| Bancassurance |
24% |
21% |
18% |
29% |
24% |
| Tied Agents |
69% |
73% |
69% |
61% |
59% |
| Financial Advisers/Others |
7% |
6% |
13% |
10% |
17% |
In terms of distribution channel sales, there has been a slight but gradual decline in tied agency sales, while banassurance sales has been volatile, sales from other channels like brokers and direct sales have been steadily climbing. This shows a maturing of the insurance industry much like what’s occured in UK, US and Australia.
Another interesting fact is that since 2007, LIA has been monitoring the percentage of new sales done via a partial or full fact find. That figure has been steadily rising from 57% in 1H 2007 to 61% in 1H 2009. This augurs well for the industry and consumers as standards of needs based advice is taking root.
With a tighter enforcement by MAS, this figure will continue to improve.
0 until now
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