Some insights from globaldata on healthcare cover in Singapore;
Personal accident and health (PA&H) insurance in Singapore is expected to grow at a compound annual growth rate (CAGR) of 6.6% from SGD8.5 billion ($6.2 billion) in 2024 to SGD11.7 billion ($8.6 billion) in 2029, in terms of gross written premiums (GWP), forecasts GlobalData, a leading data and analytics company.
GlobalData’s Insurance Database, reveals that the share of PA&H insurance in the total insurance industry grew from 12.6% in 2020 to an estimated 15.3% in 2024 and is projected to reach 17.3% by 2029. PA&H insurance is estimated to grow by 8.9% in 2024, propeled by high demand for private health insurance, as well as rising premium rates.
Aarti Sharma, Insurance Analyst at GlobalData, comments: “Singapore’s PA&H insurance has experienced a strong growth in 2024, bolstered by heightened health and financial awareness that spurred demand for health insurance products. Demographic factors including an aging population, premium price adjustments in response to inflation, and resurgence in tourism have also supported the growth of PA&H insurance.”
High demand for integrated shield plans (IPs) and their accompanying riders offered by private insurers have supported the growth of PA&H insurance. MediShield is the national health insurance program, which includes MediShield Life – a government-managed basic health insurance plan with optional coverage provided by private insurers.
According to the Life Insurance Association of Singapore, approximately 71,000 people enrolled for new IP during H12024, bringing the total coverage to 2.9 million, which is about 71% of Singapore’s population. As a result, total new business premiums for individual health insurance increased by 7.1% in H1 2024, as compared to the same period in 2023.
Sharma continues: “The increase in premiums due to rising healthcare costs will also support the growth of PA&H insurance. In October 2024, Singapore’s Ministry of Health announced a 35% increase in MediShield premiums, effective from April 2025. The adjustments recommended by the MediShield Life Council include higher claim limits, expanded coverage for new treatments, and changes to deductibles and co-insurance. The premium hike will be implemented in phases, with a cap of 35% by March 2028.”
The changing demographic conditions in Singapore such as an aging population and growing affluent population will also support PA&H insurance growth. As per the Government of Singapore, nearly 20% of the total population was aged 65 and above as of June 2024, which is a significant contributor to the growth of PA&H insurance.
Enhanced tourism is also contributing to the expansion of PA&H insurance in Singapore. According to Statistics Singapore, the number of international tourists arriving in the country increased by 16.7% on a year-on-year basis in October 2024. Travel insurance plans, which cover personal accidents in addition to trip cancellations, baggage loss, and flight delays are aiding in the growth of PA&H insurance.
Sharma concludes: “The outlook for the PA&H insurance industry in Singapore appears positive, with opportunities for insurers to capitalize on the evolving market dynamics and increasing demand for comprehensive health coverage. Rising premium prices, growing tourism, as well as an aging demographic will support the growth of PA&H insurance in Singapore over the next five years.”
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