Singapore’s personal accident and health (PA&H) insurance sector is set for significant expansion, with gross written premiums (GWP) expected to rise from $8.5 billion (US$6.2 billion) in 2024 to $11.7 billion (US$8.6 billion) by 2029. This growth represents a compound annual growth rate (CAGR) of 6.6%, according to research from GlobalData.
Increasing Share of PA&H Insurance in Singapore’s Market
The PA&H segment’s share of the overall insurance market in Singapore is also on the rise, projected to increase from 12.6% in 2020 to 17.3% by 2029. In 2024 alone, the sector is expected to grow by 8.9%, driven by factors such as higher demand for private health insurance and premium adjustments.
Key Growth Drivers Identified
Aarti Sharma, an insurance analyst with GlobalData, highlighted several key drivers fueling this growth. “Singapore’s PA&H insurance market has seen strong growth in 2024, driven by increased health and financial awareness, which has heightened demand for health insurance products,” she noted.
Sharma also pointed out that Singapore’s aging population and inflationary adjustments have contributed to the market’s expansion. Additionally, the rebound of international tourism has further stimulated demand for PA&H coverage.
A notable contributor to growth has been the popularity of integrated shield plans (IPs) and supplementary riders, which are provided by private insurers. These plans complement MediShield Life, the government-run national health insurance scheme.
Surge in Sales of Integrated Shield Plans
According to the Life Insurance Association of Singapore, 71,000 new integrated shield plans were sold in the first half of 2024, bringing total coverage to 2.9 million people, or 71% of the population. Premiums for individual health insurance policies rose by 7.1% during this period compared to 2023.
Rising healthcare costs are expected to continue pushing premiums higher. In late 2024, Singapore’s Ministry of Health announced that MediShield premiums would rise by up to 35%, to be phased in over several years beginning in April 2025. The adjustment aims to expand coverage and increase claim limits for various treatments.
Aging Population Drives Demand for Health Insurance
The aging population remains a critical factor driving the growth of PA&H insurance. As of mid-2024, approximately 20% of Singapore’s population is aged 65 or older, creating increased demand for health-related insurance products. The demographic shift underscores the need for more comprehensive health coverage in the years ahead.
Tourism Growth Boosts Travel Insurance Demand
In addition to domestic factors, Singapore has seen a significant increase in tourism. Official statistics show that the number of international visitors rose by 16.7% year-over-year in October 2024, contributing to greater demand for travel insurance, which often includes personal accident coverage.
Positive Outlook for the PA&H Insurance Sector
Looking forward, Sharma remains optimistic about the PA&H insurance sector’s trajectory. “The outlook for the PA&H insurance industry in Singapore is positive, with ample opportunities for insurers to capitalize on the evolving market dynamics and growing demand for comprehensive health coverage,” she concluded.
With a combination of demographic shifts, rising healthcare costs, and increasing tourism, the Singapore PA&H insurance market is set for continued expansion in the coming years.
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