Singapore’s general insurance industry reported a 6.3% year-on-year (YoY) increase in gross written premiums, reaching $8.1 billion (S$10.8 billion) in 2024, according to the latest data from the General Insurance Association of Singapore (GIA). This growth marks a continued upward trend in the sector, which has experienced an average annual growth rate of 8% over the past decade.
In addition to the rise in premiums, the sector also saw a 5.6% YoY increase in underwriting profit, which totaled $481.73 million (S$642.31 million). However, the sector faced rising challenges, as net incurred claims increased by 14.4% YoY, primarily driven by substantial hikes in claims within the property, travel, and health insurance segments.
Factors such as climate change, healthcare inflation, and increasing repair costs contributed significantly to the rise in claims. Notably, the domestic segment, which recorded an 8.3% YoY rise in gross written premiums, outperformed the growth seen in the previous year. Nevertheless, underwriting profit in the domestic segment fell by 16.7% YoY to $164.28 million (S$219.04 million).
Ronak Shah, President of GIA, acknowledged the sector’s ongoing challenges, highlighting the need to adapt to climate-related disasters, rising medical expenses, and the volatility of the global economy.
The health insurance segment showed signs of recovery, reporting an underwriting profit of $4.01 million (S$5.34 million) in 2024, reversing the losses seen the previous year. This improvement was fueled by a 15.9% YoY rise in gross written premiums. However, the Group Health and Surgical subsegment continues to grapple with escalating claims costs.
Meanwhile, employer’s liability insurance saw a 4.9% YoY decline in net incurred claims, while the travel insurance segment experienced a 5.1% YoY growth, with premiums rising to $232.58 million (S$310.1 million).
The industry’s outlook remains cautious as it navigates a complex landscape of rising costs and external pressures.
Note: $1.00 = S$1.34.
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