Etiqa Insurance is poised for significant revenue growth following its appointment as the official fire insurer for Singapore’s Housing Development Board (HDB). The insurer anticipates a boost of up to 20% in revenues from its residential fire insurance segment, leveraging the city-state’s 1.11 million existing HDB flats and a government initiative to construct an additional 100,000 units by 2025.
Last year, Etiqa Insurance Singapore reported a remarkable 40.9% year-on-year increase in fire insurance revenue, reaching $2.1 million (RM9 million). Jazzreal Wong, head of Direct Business at Etiqa Insurance Singapore, noted the promising potential for policy uptake in the next five years due to the strategic rollout of new flats.
In 2023, the number of HDB flats grew by 1.7%, marking the fastest annual increase since 2018. Wong projects overall growth for the residential fire insurance market, including the new HDB scheme, to range between 10% and 20%.
Starting August 16, 2024, Etiqa will offer basic fire insurance coverage for newly sold HDB flats, with premiums ranging from $0.85 (S$1.11) to $5.11 (S$6.68) for a five-year term, depending on the type of flat. Existing HDB flat owners will maintain coverage until their current policies expire.
The fire insurance policy will cover the cost of restoring damaged internal structures and fixtures, as well as areas constructed by HDB.
Data from the Civil Defense Force indicates that residential fire incidents in Singapore increased by 3.7% last year, totaling 970 cases. The primary causes were unattended cooking and electrical issues, with incidents involving battery-powered e-bikes also on the rise since 2022. Wong emphasized the heightened residential fire risk in Singapore, a relatively small country.
The fire insurance market in Singapore is competitive, with 61 general insurers offering similar products. Wong highlighted Etiqa’s competitive rates, digital capabilities, and commitment to customer service as key differentiators. The company’s home insurance, which can complement the fire insurance plan, has garnered high consumer ratings.
However, Wong acknowledged challenges such as a general lack of understanding regarding fire insurance. To address this, Etiqa has enhanced its customer service to help clients navigate technical insurance terms both before and after policy purchase. As a member of the Maybank Group, Etiqa continues to focus on educating consumers in this competitive landscape.
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