• Platform Workers found to have bigger protection gaps compared to the general Economically Activepopulation
• LifeInsuranceIndustrycommitstospearheadingeffortstonarrowtheprotectiongapinSingapore

SINGAPORE - Media OutReach - 8 September 2023 - The Life Insurance Association, Singapore (LIA Singapore) todayunveiled findings of the Protection Gap Study (PGS) 2022 which found that economically active¹(EA)Singaporeans and Permanent Residents in Singapore – including Platform Workers (PWs) - had aS$373 billion mortality protection gap²and a S$579 billion critical illness (CI) protection gap³. Thisequatestoa21%mortalityprotectiongapanda74%CIprotectiongapinSingaporein2022.Thestudycomprises two components: analysis of policy data from life insurers, as well as a supplementarymarket surveyof 775EAs. PGS2022providesinsightsfortheindustry,lifeinsurersandreinsurers,aswellasotherstakeholders -includingemployersandrelevantgovernmentagencies-toimplementactionablestrategiesthatwillsupportindividualstomeettheirprotectionandfinancialplanningneeds.Thisisespeciallyimportantgiventheextendedlifeexpectancy⁴aswellasanunpredictablesocio-economiclandscape⁵facingthecommunity today. LIASingaporealsoincludedtheadditionalanalysisofprotectionneedsandgapsofPWs⁶inPGS2022,in recognition of this being a growing segment within the community. The average PW individual hasbiggermortality andCIprotectiongaps thantheaverage EAindividual inSingapore. Mr. Dennis Tan, President, LIA Singapore said, "The Protection Gap Study 2022 shows that whilemortality and critical illness protection gaps persist, there has been progress recorded since our laststudyin2017.ThereisgreaterawarenessandappreciationofthevalueofinsuranceinSingapore,andmore individualsaretakingactions tobettermeettheir protectionneeds. ¹ Individuals employed and contributing to the production and distribution of goods and services. Platform workers fall within this categoryandareasubsetoftheeconomicallyactivegroup.²Themortalityprotectiongaprepresentsthefinancialgaptocoverneedsofdependentsoveradefinedperiodintheeventofdeath.Itistheamountofmoneyrequiredbydependentstocoverexpenses,clearoutstandingdebt,andmaintainareasonablelifestyle,lessexistingsavingsandinsurance coverage formortality,followingthedeathofamemberofthehousehold.³TheCIprotectiongaprepresentsthefinancialgaptocoverfamilyneedsduringtheassumedCIrecoveryperiodof5years,untiltheinsuredis able to return to work. It is the amount of money required to cover expenses and outstanding debt payments during the insured's CIrecovery period, less existing insurance coverage for CI. It is to be noted that identified needs of dependents beyond the CI recovery periodhave been considered on the hypothesis that the insured may not be able to meet those needs when they do return to work (due to theassumedreductionintheinsured's earningcapacity).⁴ 'Life Expectancy Improved Over the Last Decade but Saw Declines Over Recent Years Due to the COVID-19 Pandemic' (May 22, 2023)SingStatSingapore. Availableathttps://www.singstat.gov.sg/-/media/files/news/press22052023.ashx⁵ 'MTI Narrows Singapore's GDP Growth Forecast for 2023 to "0.5 to 1.5 Per Cent"' (August 11, 2023) Ministry of Trade and IndustrySingapore. 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-Cent⁶'PlatformWorkers'inthisstudyrefertoagroupofindividualsconsistingof'Private-hireWorkers','TaxiDrivers'and'DeliveryWorkers'. While this progress is encouraging, we know more can and must be done to support differentmembers of our community, such as our Platform Workers. The life insurance industry will continueleading the charge on these efforts, leveraging insights from the study to inform initiatives for theAssociation, our member companies, and other relevant stakeholders to pursue and to get moreindividuals better insured." Someareastheindustrywillexploredevelopinginitiativesforinclude:

• Enhancing the understanding and reach of insurance policies through product innovations andfurthersimplification ofpolicy-relatedmaterials

• Adoptingacustomerprofileandneeds-basedunderstandingapproachtodeveloptailoredcustomer segment-led propositions, product solutions and distribution approaches aimed atsupportingspecificgroupswithmediumtohighprotectiongaps(e.g.underservedsegmentssuchasthosethatarelesseducated,and/orthoseof lower income)

• Boosting consumer awareness and understanding about protection through public educationinitiatives

• Makingiteasierforunderservedmembersofthepublic(e.g.PlatformWorkers)toreachaccessible touchpoints to better understand and address their protection and financial planningneeds

Mortality protection gap remained relatively unchanged for EA individuals despite an increase inmortalityprotectionneeds
EA individuals in Singapore have approximately 79% of their mortality protection needs met. Thoughthe mortality protection needs increased between 2017 and 2022 – primarily...