Market Size of Singapore Motor Insurance Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 2.00 % |
| Market Concentration | Medium |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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Singapore Motor Insurance Market Analysis
Singapore Motor Insurance Market has generated a revenue of USD 860 million in the current year and is poised to register a CAGR of 2% for the forecast period. In the previous year, the gross domestic product (GDP) of the finance and insurance industry in Singapore amounted to around 73 billion Singapore dollars.
The COVID-19 pandemic had a significant impact on various sectors, including the motor insurance market in Singapore. During the pandemic, lockdown measures, travel restrictions, and work-from-home arrangements led to a significant decrease in the usage of vehicles. With fewer cars on the road, there was a corresponding decline in the number of motor insurance claims. This resulted in a decline in premiums for motor insurance providers. In response to the pandemic, regulatory authorities may have introduced temporary measures or policy adjustments to support policyholders and insurers. These changes could include extensions of insurance coverage, relaxed underwriting requirements, or the implementation of relief measures to alleviate financial burdens on policyholders.
Singapore intends to develop an insurance hub in Asia. Among different insurance segments in Singapore, motor insurance is one of the largest segments. 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.
Additionally, electric vehicle sales grew over the last 2 years, which has contributed to the high demand for motor insurance. In addition, the surge in environmental consciousness among the customers of Singapore will enable the market of EV insurance. This driving demand for electric vehicles is expected to surge the demand for new motor vehicle insurance policies, thus driving the development of the motor insurance market in Singapore.
