- Platform workers face greater protection gaps compared to all economically active workers. population
- Life Insurance Industry commit has spearhead efforts has narrow THE protection gap In Singapore
SINGAPORE – Media Awareness – September 8, 2023 – The Life Insurance Association, Singapore (LIA Singapore) today unveiled the results of the Protection Gap Study (PGS) 2022, which found that economically active countries1 (EA) Singaporeans and permanent residents in Singapore – including platform workers (PW) – had a A mortality protection gap of S$373 billion2 and a critical illness (CI) protection gap of S$579 billion.3. This is equivalent has A 21% mortality protection gap And A 74% THIS protection gap In Singapore In 2022. THE study includes two components: the analysis of life insurer contract data, as well as a complementary market research of 775 EA.
GSP 2022 provides knowledge For THE industry, life insurers And reinsurers, as GOOD as other stakeholders
– including employers And relevant government agencies – has implement exploitable strategies that will support people has meet their protection And financial planning needs. This East especially important given THE extended life waiting4 as GOOD as A unpredictable socioeconomic landscape5 focused towards THE community today.
LIA Singapore Also included THE additional analysis of protection needs And gaps of P.W.6 In GSP 2022, in recognition that this is a growing segment within the community. The average TP individual has bigger mortality and THIS protection shortcomings that THE Average EA individual in Singapore.
Mr Dennis Tan, President of LIA Singapore said: “The 2022 Protection Gap Study shows that although gaps in protection against mortality and serious illness persist, progress has been made since our last study In 2017. There East bigger awareness And appreciation of THE value of insurance In Singapore, And more individuals are socket actions for better meet their protection needs.
1 Individuals employed and contributing to the production and distribution of goods and services. Platform workers fall into this category And are A subset of THE economically active band.
2 THE mortality protection gap represented THE financial gap has blanket needs of dependents on A defined period In THE event of the death. He East THE Rising of money required by dependents has blanket expenses, clear outstanding debt, And maintain A reasonable way of life, less existing savings And insurance coverage for mortality, following THE the death of A member of THE household.
3 THE THIS protection gap represented THE financial gap has blanket family needs during THE assumed THIS recovery period of 5 years, until THE insured is able to return to work. This is the amount of money needed to cover expenses and payments of outstanding debts during the insured’s health insurance period. payback period, less existing insurance coverage for CI. It should be noted that the identified needs of dependents beyond the IC recovery period were considered on the assumption that the insured might not be able to meet these needs upon returning to work (due to the assumed reduction In THE earnings of the insured ability).
4 “Life expectancy has improved over the past decade, but has seen a decline in recent years due to the COVID-19 pandemic” (May 22, 2023) ChanterStat Singapore. Available has https://www.singstat.gov.sg/-/media/files/news/press22052023.ashx
5 “MTI cuts Singapore’s GDP growth forecast for 2023 to ‘0.5-1.5%’” (August 11, 2023) Ministry of Trade and Industry Singapore. Available at: https://www.mti.gov.sg/Newsroom/Press-Releases/2023/08/MTI-Narrows-Singapore-GDP-Growth-Forecast-for– 2023-to-0_5-to-1_5-Per-Cent
6 ‘Platform Workers’ In This study refer has A band of people consisting of “Privatization Workers’, ‘Taxi Drivers’ And ‘Delivery Workers’.
While this progress is encouraging, we know that more can and should be done to support the different members of our community, such as our Platform Workers. The life insurance industry will continue lead these efforts, leveraging learnings from the study to inform initiatives for the Association, our member companies and other relevant stakeholders to pursue and achieve further better-insured individuals.”
A few areas THE industry will explore development initiatives For include:
Improve the understanding and reach of insurance policies through product innovations and further simplification of related to politics materials
Adopt A customer profile And based on needs understanding approach has develop adapted proposals focused on customer segments, product solutions and distribution approaches aimed at proof specific groups with AVERAGE has high protection gaps (For example underserved segments such as those that are less educated, and or those lower income)
Increase consumer awareness and understanding of protection through public education initiatives
Manufacturing he Easier For underserved members of THE public (For example Platform Workers) has reach accessible points of contact to better understand and discuss their protection and financial planning needs
The mortality protection gap remained relatively unchanged for EA individuals despite an increase in the mortality protection needs
EA individuals in Singapore have approximately 79% of their mortality protection needs met. However needs for mortality protection have increased between 2017 and 2022 – mainly due to a increased cost of living and number of EA individuals – mortality protection gap remained relatively unchanged Since 2017, with A light 2% decrease Since 23% has 21%.
This East largely due has income levels going up, increase In Central Foresighted Funds (CPF) And other savings by 47%, as as well as A 11% elevation in life insurance blanket.
Average mortality coverage per insured increased by approximately S$41,100 to S$331,200. in 2022, which is about 3.6 times the average annual income. Policyholders in Singapore have A average of three Strategies For mortality protection.
THIS protection gap for EA Individuals Shrunk mostly due has a increase In THIS blanket
The CI protection gap among EA people has narrowed by 7% – down to 74% in 2022. compared to 81% in 2017. The average CI insurance coverage per insured increased by approximately S$64,400 to reach S$193,300 in 2022. That’s about 2.1 times on average annual income.
This reduction in the CI insurance protection gap compared to 2017 is mainly explained by an increase of approximately 63% in THIS blanket Since SO.
On average, A THIS insured possesses less that A autonomous policy. Their THIS blanket East in general Since Whole life insurance policies or riders with THIS has extra charge their main life Insurance conditions.
Bigger mortality And THIS protection gap among Platform Workers because of lower savings And insurance blanket
GSP 2022 find that there East A 59% mortality protection gap And A 91% THIS protection gap among POWs. This is mainly because they have lower CPF and deposit savings, as well as lower insurance. blanket compared to EA individuals.
Points to remember Since THE additional walk investigation include:
Many PT respondents indicate that they are not covered by group insurance offered by platform providers, another party not knowing if they receive group information Insurance cover.
PW respondents expressed interest in the life insurance industry establishing contact points they can visit for advice and support for their financial planning journey And insurance protection needs. THE industry recognize that these touch points could include roadshows has THE desks platform suppliers.
Comparison between 2017 GSP and 2022 GSP
Resources available include THE AGGREGATE of available savings (that’s to say CPF savings, other savings such as species And deposits) And existing insurance blanket
Note has editor: THE complete the report is available has www.lia.org.sg
The issuer is solely responsible for the content of this announcement.