Life and Non-Life Insurance Market in Singapore - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

Market Overview

The life and non-life insurance market in Singapore are estimated to record a CAGR of approximately 5% during the forecast period.

The stringent lockdown measures imposed by the government to curb the spread of the COVID-19 pandemic resulted in the decline of economic activity. As a result, Singapore's economy was down by 13.2% in the second quarter of 2020 compared to the same period the previous year. Subsequently, the life insurance business, which recorded SGD 1.66 billion in weighted new business premiums during H12020, declined by 13% compared to the same period in 2019.

Singapore's life insurance industry recorded a total of SGD 4.38 billion in weighted new business premiums for year-to-date 4Q2020, a positive 3% growth, compared to 2019. There was a rebound in the second half of the year after the initial fallout from COVID-19, which affected policy uptake significantly in the second quarter of the year. The uptake of new policies purchased online saw a significant increase to 206,679 in 2020 compared to 9,971 in 2019. The life insurance industry will continue to accelerate its digital transformation efforts and upskill the future workforce.

Overall, the industry recorded a total of SGD 2.99 billion in weighted new business premiums for year-to-date 3Q2020, a decline of 2% from the same period in 2019. However, there was a notable 90.6% increase in new business premiums recorded in 3Q2020 compared to 2Q2020. In 2020, motor insurance gross premiums written amounted to SGD 1.13 billion. The COVID-19 pandemic heightened the awareness about adequate protection and compelled consumers to prioritize health insurance even more during the pandemic. The health insurance segment recorded SGD 692.7 million in gross written premiums for the financial year, a 3.9% increase compared to the previous year, with underwriting profit at SGD 17.9 million. Property insurance observed a 10% increase, or SGD 591.8 million, in gross written premiums and recorded an underwriting profit of SGD 43.7 million in 2020. In 2019, the segment saw SGD 538 million in gross written premiums and noted an underwriting loss of SGD 22.4 million. Figures reported by the sector can be attributed to downward adjustments in market capacity and the impact of changing rates.

Scope of the Report

This report aims to provide a detailed analysis of the life and non-life insurance market in Singapore. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights into various product and application types. Also, it analyzes the key players and the competitive landscape in the life and non-life insurance market in Singapore. The life and non-life insurance market in Singapore is segmented by insurance type (life and non-life) and distribution channel (direct, agency, banks, and other distribution channels).

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Key Market Trends

Increase in GDP Per Capita of Finance and Insurance Industry

GDP per capita is a very important indicator of the economic strength of a country, and a positive change is an indicator of economic growth. The per capita income of the country has increased in recent years and is expected to continue during the forecast period. In 2020, growth in the finance and insurance sector was 4.9% Y-o-Y, faster than the 4.2% expansion in the third quarter. The sector's strong performance was largely due to healthy expansions in the banking and insurance segments. On a quarter-on-quarter seasonally-adjusted annualized basis, the finance and insurance sector grew by 3.8%, accelerating from the 0.9% growth in the preceding quarter.

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