The life insurance sector in Singapore is on an upward path, as projected by GlobalData. It is anticipated to rake in a staggering $43.6b in gross written premiums (GWP) by 2029, potentially achieving a compound annual growth rate (CAGR) of 4.0% starting from 2025. This growth spurt is set to be fuelled by multiple factors. The ageing population, which is expected to comprise 18.0% of the total by 2030, along with a rising health awareness and a rebound in consumer spending, are set to be the driving forces. After a predicted 3.0% expansion in 2025, recovering from a 2024 slump due to global economic woes, inflation, and volatile markets, the sector is looking towards a brighter future.
Analyst Manogna Vangari from GlobalData points out that the industry will gain steam in 2025. The changing demographics and growing health consciousness will boost the demand for personal accident and health (PA&H), and whole life insurance policies. Whole life insurance, the largest segment in 2024 with an estimated 44.0% of GWP, though facing a 4.1% dip in 2024 because of inflation and rising interest rates, is set to rebound with 2.1% growth in 2025 and a 3.1% CAGR from 2025 to 2029. Endowment insurance, the second-largest, accounting for 32.8% of GWP in 2024, is expected to grow at a 3.7% CAGR till 2029, driven by rate hikes and a shift to wealth-centric products.
PA&H insurance, with a projected 14.2% market share in 2024, is slated to experience a 6.6% CAGR over the same period, thanks to escalating healthcare costs and enhanced health awareness. The remaining 8.9% of the market in 2024 consists of term life, general annuity, and other insurance products. Vangari attributes the growth to demographic changes, which are increasing the demand for life and health insurance, especially among the affluent. Insurers are likely to focus on developing products for the ageing demographic in the next five years, ensuring a continued evolution of the Singapore life insurance landscape.
Related topics
