SINGAPORE COULD SEE DRASTIC FALL IN SINGLE-PREMIUM POLICY SALES

New rules on investing Singapore’s Central Provident Fund (CPF) money, which take effect from April 1 this year, will cut the sum available for private investment under the CPF Investment Scheme, reports Singapore Straits Times . The CPF accounted for more than 60% of single-premium sales last year. Life Insurance Association (LIA) president Mark O’Dell said that from April 1 the level of CPF funds available for investments was expected to fall by 50%. He said that this could cause single-premium revenues to fall by between 30% and 40%. This would mean that insurers would have to find non-CPF buyers, such as consumers using their own savings. Mr O’Dell claimed that the new rules could affect AIA, NTUC Income, Prudential and Great Eastern Life more than most, because they had a higher level of dependence on CPF single-premium sales.