Singapore’s life insurance industry has reported a robust 19.7% year-on-year (YoY) growth in 2024, achieving $5.87b in total weighted new business premiums, according to the Life Insurance Association, Singapore (LIA Singapore). This growth, primarily driven by an increase in annual premium business, highlights the sector’s resilience amidst challenging economic conditions.
Investment-linked plans (ILPs) were a significant contributor, surging 41% YoY, as consumers sought wealth accumulation options amidst economic uncertainty. Regular premium ILPs, which help mitigate market timing and volatility, saw increased uptake. Non-participating products also grew by 19.2% YoY, whilst participating products saw a slight decline of 2.7% YoY.
The industry also made progress in narrowing Singapore’s protection gap, with a 3.6% YoY increase in total sum assured for the year. Health insurance coverage expanded, with approximately 40,000 more Singaporeans and Permanent Residents covered by Integrated Shield Plans (IPs) by the end of 2024. In total, 2.97 million lives, or 71% of Singapore residents, are now protected by IPs.
Dennis Tan, President of LIA Singapore, expressed optimism about future growth, citing rising consumer awareness and demand for sustainable insurance products. However, he noted the challenge of medical inflation, expected to rise by 12% in Singapore, necessitating collaboration among insurers, the medical community, and policymakers to keep healthcare premiums affordable.
The final quarter of 2024 saw an 11.1% YoY growth in total weighted new business premiums compared to the previous year, driven by a 27.9% YoY increase in annual premium products. However, single premium products experienced a 26.3% YoY decline in the same period. The industry paid out $18.12b in claims in 2024, marking a 33.4% increase from the previous year.
This news story was carefully selected and published by a human editor, though the content itself was AI-generated. If you spot an error, please report it here.
