A study of life insurance industry in Singapore.

Abstract

We analysed the performance of the life insurance industry in Singapore and provided insights on the future development of the industry. We studied the predicted sales figures from 2005 to 2010 and we found that actual sales deviated during 2005 and 2006 due to Dengue Fever Outbreak, the commencement of Dependent’s Protection Scheme, MediShield Plus and Deposit Insurance Scheme. Epidemic outbreaks in 2008 and 2009 also caused an increase in sales of life insurance policies. We then took the research a step further by identifying five business operational factors that may have an impact on the sales of life insurance policies and we concluded that Investment Revenue, Distribution Expenses and Reinsurance Expenses have a positive relationship against Sales of Insurance Policies while Management Expenses and Surrender Rates have a negative one. Finally, we foresee a positive future development in the industry with the recent commencement of the Policy Owners’ Protection Scheme and Euro Financial Crisis. Opinions of sales professionals in the industry are discussed.