Singapore’s life insurance industry experienced a notable 19.7% year-on-year (YoY) growth in 2024, with total weighted new business premiums reaching S$5.87 billion (US$4.34 billion), according to the latest data from the Life Insurance Association, Singapore (LIA Singapore).
The surge in premiums was largely attributed to an increased demand for annual premium products. Investment-linked plans (ILPs), in particular, saw a significant boost, rising 41% from S$1.6 billion (US$1.19 billion) in 2023 to S$2.25 billion (US$1.67 billion) in 2024. This growth came as consumers sought ILPs for wealth accumulation, driven by ongoing economic uncertainty and higher interest rates.
Regular premium ILPs gained popularity due to their ability to mitigate risks associated with market timing through dollar-cost averaging.
Non-participating products also saw growth, increasing by 19.2% YoY to S$2.19 billion (US$1.62 billion). Meanwhile, participating products experienced a slight decline of 2.7% YoY.
In terms of protection coverage, the industry’s efforts to close Singapore’s protection gap yielded positive results, with the total sum assured rising by 3.6% YoY. Financial Adviser Representatives were responsible for 40.7% of this growth, while Tied Representatives contributed 33.3%.
Health insurance coverage also expanded, with an additional 40,000 Singaporeans and Permanent Residents enrolling in Integrated Shield Plans (IPs) by the end of 2024. In total, 2.97 million people, or 71% of the nation’s residents, are now covered by IPs, which offer extra coverage beyond MediShield Life.
Dennis Tan, President of LIA Singapore, highlighted that the industry’s strong recovery in 2024 sets a solid foundation for future growth, despite challenges such as interest rate fluctuations and geopolitical tensions. Tan emphasized the sector’s commitment to continuously evolving its products and strengthening financial planning to provide better protection for residents.
Annual premium products were the main driver of growth in the fourth quarter of 2024, with total weighted new business premiums rising by 11.1% YoY. Annual premiums alone saw a 27.9% increase during the quarter, contributing an additional S$121.9 million (US$90.21 million) in premiums, a 10.9% YoY increase.
On the other hand, single premium products saw a decline of 26.3% YoY in Q4 2024, marking the only quarter of negative growth for the year. For the full year, single premium products totaled S$1.65 billion (US$1.22 billion) in weighted premiums.
As the life insurance industry continues to evolve, it is positioning itself for continued growth in the years ahead.
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