Life insurance policy sales up in Q1 By Kristie
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SINGAPORE: Life insurance policy sales in Singapore grew modestly during the first quarter of this year.
According to the Life Insurance Association of Singapore (LIA), sales grew by 12 per cent from the same time last year.
For the first quarter of 2012, the industry clinched S$517 million in weighted new business premiums, up from S$460 million during the same time last year.
LIA said that this was largely due to a 22 per cent increase in annual premium sales to S$360 million in the quarter.
Single premium sales on the other hand saw a dip of 5 per cent to S$157 million.
President of the Life Insurance Association Mr Tan Hak Leh said: "Single premium plans are sensitive to low interest rate environment, hence attracting less investors."
He also expects "challenging conditions" to prevail in 2012.
Mr Tan said: "The life insurance industry in Singapore is likely to face very difficult conditions this year mostly because of the uncertain global economy, as well as the interest rates in Singapore remaining at close to a historical low. During times of uncertainty, consumers tend to defer the decision to make financial commitments such as buying a life insurance contract."
Total new sales from the previous quarter declined by 5 per cent to S$517 million from S$542.9 million.
Source: CNA
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