Singapore’s general insurance industry is poised for steady growth, with a projected compound annual growth rate (CAGR) of 6.2%, reaching S$8.1 billion ($5.9 billion) in gross written premiums (GWP) by 2029, up from S$6.0 billion ($4.4 billion) in 2024, according to GlobalData. Growth for 2025 is expected to be slightly higher at 6.4%, driven by favorable regulatory changes, economic expansion, and rising demand for private health insurance.
The industry’s profitability remains strong, with a combined ratio forecasted at 86% in 2024, indicating effective management of claims and expenses. Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, highlighted the industry’s resilience and efficiency.
Several regulatory measures by the Monetary Authority of Singapore (MAS) are expected to further stimulate growth. These include a streamlined insurance product approval process set for November 2024 and the Cybersecurity (Amendment) Bill, which is expected to come into effect in May 2024. In July 2024, MAS also introduced new Fit and Proper Criteria guidelines to uphold competency and integrity within the sector.
Private Health Insurance and Ageing Population Drive Growth
Personal Accident & Health (PA&H) insurance is forecast to remain the largest segment, accounting for 23.8% of GWP in 2025. This segment is expected to grow by 7.6%, bolstered by rising medical costs and an increase in tourism. The country’s aging population, with those aged 65 and above expected to represent 24.1% of the population by 2030, will further support growth, with a projected 6.8% CAGR for PA&H insurance from 2025 to 2029.
Motor Insurance and Rising Vehicle Registrations
Motor insurance, the second-largest segment, is expected to account for 19.8% of GWP in 2025, with a growth rate of 6.2%. The surge in vehicle sales, which saw new vehicle registrations rise by 30% from January to October 2024 compared to the same period in 2023, is a key factor driving this growth. The rise of electric and autonomous vehicles, alongside government initiatives such as the plan to phase out diesel buses by 2040, will further fuel the expansion of motor insurance. This segment is projected to grow at a 3.6% CAGR from 2025 to 2029.
Property Insurance Growth Fueled by Construction Demand
Property insurance, the third-largest segment, is forecast to account for 17.9% of GWP in 2025, with a growth rate of 5.1%. Increased construction demand and new public infrastructure projects are driving this growth, with the segment expected to grow at a 7% CAGR over the next five years.
Other Segments and Future Outlook
Other insurance segments, including Liability, Marine, Aviation, Transit (MAT), and Financial Lines, are expected to account for the remaining 38.5% of GWP in 2025.
Sahoo emphasized that Singapore’s general insurance industry is on track for consistent growth from 2025 to 2029, driven by regulatory developments, economic expansion, and shifting consumer demands. He concluded, “As insurers enhance their digital capabilities and develop innovative products, the general insurance market in Singapore is poised for continued success in the coming years.”
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