Latest report from GlobaData looks at Singapore;
The top insurance companies in Singapore are set to witness a revenue growth over coming years, as digital distribution and increased customization enable them to enhance their offerings amidst a positive environment created by easing COVID-19 restrictions and a recovery in global economic activity to pre-pandemic levels, says GlobalData, a leading data and analytics company.
The Singaporean insurance industry is dominated by the top five insurers, which accounted for a 75.8% share in terms of gross written premiums (GWP) in 2021, while the top 10 players occupied a share of 89.2%. The market share of the top five and top 10 insurers increased by 3.2 percentage points (pp) and 0.6pp in 2021 compared to 2020, respectively.
Manogna Vangari, Insurance Analyst at GlobalData, comments: “Prompt scaling of technology and increased adoption of digitalization enabled insurers to create new opportunities and improve customer experience. To build a resilient business, Singapore insurers strengthened their distribution channels by adding digital tools to their core channels like agencies, financial advisers, and bancassurance.”
GlobalData’s Insurance Database reveals that Great Eastern Life Assurance continues to lead the Singaporean insurance industry with a market share of 25.7% in 2021. Manulife jumped up from the fourth position in 2017 to the second largest insurer in 2021, whereas Prudential Assurance slipped to the third spot from the second position in 2017.
Among the top 10 insurers, Singapore Life registered a triple-digit growth of 272.7% during 2017–21, which helped it to increase its market share to 5.2% in 2021 from 2% in 2020.
To provide seamless support to their customers following the pandemic, Singaporean insurers focused on customization. For example, NTUC Income Insurance launched low-cost subscription-based customized insurance policies in July 2021. These short-term policies offer modular packs which allow customers to customize, and the low-cost pocket friendly policies also provided flexibility to modify coverage or add-on options based on changes in customers’ lifestyle.
Manogna continues: “Singaporean insurers also entered into strategic partnerships and offered customer-centric innovative insurance solutions to drive growth.”
In April 2022, Manulife and DBS Bank collaborated to offer affordable, customizable and protection products such as ProtectFirst for young Singaporeans. Prudential announced partnerships with Smarter Health and Privé Technologies in November 2021 to expand its health and wealth offerings on Pulse mobile app.
Manogna concludes: “Singaporean insurers are expected to continue their profitable growth over the coming years, driven by shift towards digital initiatives and customization.”
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