Life and Non-Life Insurance Market in Singapore Market Size

Singapore Insurance Market Analysis

The Life and Non-Life Insurance Market in Singapore Market size in terms of net written premiums value is expected to grow from USD 65.62 billion in 2024 to USD 105.43 billion by 2029, at a CAGR of 9.95% during the forecast period (2024-2029).

The stringent lockdown measures imposed by the government to curb the spread of the COVID-19 pandemic resulted in a decline of economic activity in the country. 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 (USD 1.24 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 (USD 3.27 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 (USD 0.84 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 (USD 517.6 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 (USD 13.4 million). Property insurance observed a 10% increase, or SGD 591.8 million (USD 442.2 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 (USD 401.1 million) in gross written premiums and noted an underwriting loss of SGD 22.4 million (USD 16.7 million). On overall total life insurance gross written premiums is increased from SGD 40,888 million (USD 30,550.9 million) in 2020 to SGD 48,141 million (USD 37,950.3 million) in 2021 and same increase carried in non-life gross written premiums from SGD 4,364 million (USD 3,260.7 million) to SGD 4,712 million (USD 3,520.7 million). Figures reported by the sector can be attributed to downward adjustments in market capacity and the impact of changing rates.