Market Trends of Singapore Property & Casualty Insurance Industry
Motor Insurance Dominates the Property and Casualty Insurance of Singapore
Motor Insurance contributes more than one-fourth of the gross premium written for general insurance in the country. In the previous year, the vehicle insurance segment grew at a steady pace, with a 2.7 percent raise over the previous year. As additional operations restarted with the easing of the lockdown, the segment's total claims paid out increased by 8.3%, and the number of fatal accidents increased by One-Fourth. Road traffic incidents have also increased the number of injuries. As Singapore moves closer to an endemic new normal, motor claims are projected to rise in the coming year.
Various Insurance Companies started working closely with key partners and stakeholders like the Singapore Road Safety Council and Traffic Police on the way to improving education and awareness for road users in Singapore. Sales of motor vehicles have improved post covid, reflecting the improvement in customer demand, which is expected to support the growth in motor insurers' premiums in the short term. The total of insurance companies has been increasing, especially in the last two years, with confined and direct insurers leading the industry.
Property Insurance is on Rise with Increase in Singapore’s Commercial Real Estate Investment
Property Insurance contribution to the total gross premium written in Singapore is increasing and represent one of the largest segment in general insurance. In the previous year, the volume of commercial real estate investment in Singapore increased by a factor of three. With development activities gradually increasing, the property insurance category is likely to continue to rise. The demand for private properties in Singapore has been on the rise, primarily from high-net-worth individuals, driving prices and rental rates to new heights.
The city-state's vibrant economy, infrastructure, and efficient governance have attracted investors, both domestic and international, seeking to capitalize on its favorable business environment. The surge in demand for private properties reflects the confidence in Singapore's long-term economic prospects. The real estate market's positive performance reinforces the city-state's standing as a global financial hub and a preferred destination for property investors which is driving the property insurance sector of Singapore.
