Singapore Insurance Market in Focus

The latest report from GlobalData;

Singapore’s general insurance industry is projected to grow at a compound annual growth rate (CAGR) of 6.2% from SGD6.0 billion ($4.4 billion) in 2024 to SGD8.1 billion ($5.9 billion) in 2029, in terms of gross written premiums (GWP), according to GlobalData, a leading data and analytics company.

As per GlobalData’s insurance database, the general insurance industry in Singapore is expected to grow by 6.4% in 2025, driven by favorable regulatory developments, economic growth, and demographic shifts that are supporting the growth of private health insurance.

Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “The profitability of Singapore’s general insurance industry is anticipated to remain robust, with a combined ratio at 86% in 2024, indicating efficient management of claims and expenses.”

The Monetary Authority of Singapore (MAS) has been proactive in issuing guidelines to streamline insurance product approvals and enhance cybersecurity measures, which are expected to bolster market growth. These include the amendment to streamline the approval process for new insurance products in November 2024 and the Cybersecurity (Amendment) Bill passed in May 2024. The MAS also released guidelines on Fit and Proper Criteria in July 2024 to ensure the competence and integrity of individuals in the insurance sector.

PA&H insurance is the leading line of business in the Singapore general insurance industry that is expected to account for an estimated 23.8% share of the GWP in 2025. PA&H insurance is expected to grow by 7.6% in 2025, driven primarily by increased medical costs due to inflation and improved tourism.

Singapore is one of the fastest aging countries in the world. According to the National Population and Talent Division of Singapore, the percentage of the population above 65 years has increased from 12.4% in 2014 to 19.9% in 2024 and is expected to reach 24.1% in 2030. These demographic changes will support PA&H insurance to grow at a CAGR of 6.8% over 2025-29.

Motor insurance is the second-largest line that is expected to account for a 19.8% share of GWP in 2025. It is expected to grow by 6.2% in 2025, driven by an increase in vehicle sales. According to the Land Transport Authority, the registration of new vehicles increased by 30% during Jan-Oct 2024, compared to the same period in 2023.

Motor insurance is also positively influenced by developments in the electric vehicle (EV) and autonomous vehicle (AV) segments. The Singaporean government aims to transition 50% of its public bus fleet to electric buses by 2030 and phase out all diesel buses by 2040. These initiatives, along with rebates on the additional registration fee for electric car and taxi owners, are expected to increase EV sales and drive growth in motor insurance. Motor insurance is expected to grow at a CAGR of 3.6% in 2025-29.

Property insurance is the third largest line that is expected to account for a 17.9% share of GWP in 2025. It is expected to grow by 5.1% in 2025, driven by Singapore’s position as a prominent regional and global trade hub that has led to an increase in the construction demand. Also, the launch of new public infrastructure projects will further support the growth of property insurance. Property insurance is expected to grow at a CAGR of 7% over 2025-29.

Liability, Marine, Aviation, and Transit (MAT), Financial Lines, and other general insurance products are estimated to account for the remaining 38.5% share of the general insurance GWP in 2025.

Sahoo concludes: “The general insurance industry in Singapore is poised for steady growth from 2025 to 2029, supported by regulatory developments, economic growth, and evolving consumer needs. As insurers expand their digital capabilities and introduce innovative products, the general insurance market in Singapore is set to thrive over the next five years.”