On the back of better economic growth, life insurance sales in Singapore in 1Q2011 is up 45% compared to 1st Quarter 2010, driven mainly by a 65% increase in single premium sales (mostly short-term endowments).
Weighted regular premiums increased by 35% while, Health insurance sales fell 13%.
Banks accounted for 37% of sales (up 14%), a significant portion of which from single-premium endowments, while Financial Adviser (non-tied) distribution added 12%.
Other important statistics: Sales with partial or full Fact Find improved to 77%. Tied insurance agents numbers declined from 13,581 to 12,869.
Authors’ Comments:
While Financial Advisers (non-tied) portion of insurance sales remain fairly stagnant, the bank’s share of the insurance pie has significantly increased. With the observation of much revenue actually derived from Single-Premium endowments, you can see that the bank’s capture client base has a big potential for insurers, thus competition for FAs and tied-agents.
For practitioners, it’s important to note that sales involving partial or full fact-find has increased very significantly to 77%. Do you benchmark your practice to achieve this? More importantly, is the spirit of the fact-find: to have a reasonable basis of recommendation.
Original Article: Robust Q1 growth in life insurance sales, Life insurance industry starts 2011 on a high note
