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					Singapore Insurance Report Q1 2012

Published: January 2012                     No. of Pages:90                         Price: US$530




In world terms, Singapore ranks as a medium-sized market for (re)insurance that, in spite of being well
developed by most metrics, will likely to grow quite rapidly through the forecast period. There are
essentially three components to the sector. The first is a mature domestic non-life business – the
Singapore insurance funds – in which premiums are growing at single digit rates. The second is a rapidly
developing offshore non-life (re)insurance business. The non-life (re)insurers who are operating
in/through Singapore are significant beneficiaries of the overall economic growth of Southeast Asia. The
third is the dynamic life insurance segment, which has much in common with its counterpart in Hong
Kong.

 In both city-states, life insurance premiums continue to grow strongly thanks to ‘demand-related’ and
‘supply-related’ factors. High income levels, high savings rates, widespread understanding of the benefits
of life insurance and low interest rates from bank deposits ensure that households’ demand for life
insurance products continues to flourish. The importance of both Hong Kong and Singapore as regional
business centres also underpins demand for group life products. Supply comes mainly from the local
subsidiaries of world-class multi-national insurance companies. In both cases, the leading player is the
subsidiary of a leading local commercial bank – HSBC Insurance in the case of Hong Kong and OCBC’s
Great Eastern in the case of Singapore. However, although both HSBC Insurance and Great Eastern
would rank as extremely substantial life insurers in any market, they do not exercise crushing domination
of their respective life segments. There remains the opportunity for other life companies to develop
businesses through the introduction of innovative new products and/or focused distribution strategies.

Data for Q311 confirms that, from the point of view of the life insurers, the main catalyst for growth has
been a surge in sales via banks – bancassurance is booming. Most life companies are also taking steps
to boost the productivity of their agency networks. Some are introducing innovative new products. From
the point of view of clients, life insurance is a very attractive conduit for savings at a time when interest
rates are low and financial markets are volatile. Group life products have been growing strongly in
popularity. The main risk remains volatility in global financial markets – a factor over which the insurers
have little control.

The development of the non-life segment will depend partially on consumer confidence and partially on
the desire of corporate planners at multinational companies to move operations to Singapore, in order to
take advantage of the excellent business environment. Global reinsurers already dominate the offshore
insurance funds of the non-life segment.

Singapore Insurance Market Report

Table of Contents

Executive Summary 5
Table: Singapore’s Total Premiums, 2008-2016 . 5
SWOT Analysis ... 7
Singapore Insurance Industry SWOT ... 7
Singapore Political SWOT ... 8
Singapore Economic SWOT . 9
Singapore Business Environment SWOT ... 10
Life Sector . 11
Asia Pacific Life Sector Overview ... 11
Table: Asia Pacific Life Premiums, 2008-2016 (US$mn) ... 11
Singapore Life Sector Update . 14
Table: Distribution Of Individual Business In Force, Q111 ... 14
Life Industry Forecast Scenario .. 16
Table: Singapore’s Life Premiums, 2008-2016 .. 16
Growth Drivers And Risk Management Projections ... 17
Population . 17
Table: Insurance Sector Key Drivers – Demographics, 2008-2016 . 17
Non-Life Sector . 19
Asia Pacific Non-Life Sector Overview ... 19
Table: Asia Pacific Non-life Premiums, 2008-2016 19
Singapore Non-Life Sector Update . 21
Table: Principal Non-Life Lines, Gross Written Premiums, Q111 ... 21
Non-Life Industry Forecast Scenario .. 22
Table: Singapore’s Non-Life Premiums, 2008-2016 ... 22
Growth Drivers And Risk Management Projections ... 23
Macroeconomic Outlook 23
Table: Singapore Economic Activity, 2011-2016 ... 26
Political Stability Outlook .. 26
Table: Asia Pacific Regional Security Ratings ... 29
Healthcare . 30
Healthcare Insurance 33
Epidemiology . 34
Table: Singapore’s Insurance Key Drivers, Disability-Adjusted Life Years 2008-2016 .. 35
Motor . 37
Table: Singapore’s Insurance Key Drivers, Autos 2008-2015 . 38
Islamic Finance . 38
Insurance Risk/Reward Ratings ... 39
Table: Singapore’s Insurance Risk/Reward Ratings ... 39
Table: Asia Pacific Insurance Risk/Reward Ratings ... 40
Competitive Landscape 41
Competitive Landscape Analysis . 41
Major Players In Singapore’s Insurance Sector . 44
Table: Largest Life Companies, 2010 46
Table: Largest Non-Life Companies By Gross Written Premiums, 2010 . 47
Table: Largest Reinsurance Companies By Gross Written Premiums, 2010 ... 48
Table: Offshore Insurance Funds, 2010 . 49
Company Profiles .. 50
Local Company Profiles . 50
Great Eastern 50
NTUC Income 52
Regional Company Profiles 53
Ageas . 53
AEGON .. 55
AIA Group Limited 56
Allianz 58
Aviva .. 60
AXA 61
BNP Paribas Cardif ... 63
Chartis ... 64
HDI-Gerling .. 66
HSBC Insurance 67
ING Group . 69
Liberty Mutual ... 70
Manulife . 71
MetLife ALICO .. 73
Prudential Financial .. 75
Prudential plc 77
QBE ... 79
RSA 81
Sun Life Financial .. 82
The Principal . 83
Zurich Financial Services .. 84
BMI Methodology .. 86
Insurance Risk/Reward Ratings .. 87
Table: Insurance Risk/Reward Indicators And Rationale ... 89
Table: Weighting Of Indicators . 90

				
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Description: The first is a mature domestic non-life business – the Singapore insurance funds – in which premiums are growing at single digit rates