A study of the growing trends of the life insurance industry and its future outlook

The life insurance industry has been expanding very rapidly in the past ten years. Growth of the industry can be measured by the amount of sums insured and the amount of premiums paid. In this project report, the growth of the life insurance industry from 1981 to 1990 will be studied. The factors that have contributed to this rapid expansion is then examined. With the results from the analysis of the factors, predictions to the future trends of the industry were made. In 1981 to 1983, the industry experienced strong growth. This was due to the growing economy, low percentage of population insured and an expanding workforce. During 1984, there was negative growth in the industry. The general slow down of the economy, increased CPF contribution rates and clamping down of a specific company by the Insurance Commissioner, contributed to this decline. The growth of the industry was regained from 1985 onward. This recovery was largely due to better trained agents, increased awareness of the importance of insurance and an improved corporate image of the industry. The future for the industry looks promising and there is potential for further growth. However, companies may have to be prepared to change their existing business management and practices.BUSINES