Report Overview

Rapid pace of urbanization and infrastructure development projects, the country’s robust and growing economy, and evolving government regulations are expected to drive Singapore General Insurance Market during the forecast period between 2024 and 2030.

Singapore General Insurance Market – Industry Trends & Forecast Report, 2030

Singapore General Insurance Market size was estimated at USD 7.59 billion in 2023. During the forecast period between 2024 and 2030, Singapore General Insurance Market size is projected to grow at a CAGR of 9.2% reaching a value of USD 13.94 billion by 2030. Prominent drivers of the market include investments in infrastructure projects and rising demand for health insurance, particularly in the aftermath of the pandemic. Insurance claims for auto, life, and home insurance are the most prevalent in Singapore. The integration of technology within the insurance industry is poised to lower product costs, enhance profitability, and broaden access to new risk pools. Singaporean insurers are increasingly incorporating digital technologies into their traditional operations to streamline processes, save time, and cut costs. As the industry continues to evolve, these digital advancements are expected to further enhance operational efficiency and profitability across the insurance supply chain, in line with trends seen in other developed markets. Also, the rise in disposable income in Singapore is contributing to greater financial awareness and a heightened emphasis on long-term financial planning. Life insurance is becoming increasingly popular as individuals prioritize safeguarding their loved ones and securing their financial futures. Many life insurance policies also offer investment features, such as savings plans or investment-linked policies, allowing policyholders to grow their savings or benefit from financial market gains. The increase in disposable income and purchasing power is providing significant growth opportunities for players in Singapore General Insurance Market.

General Insurance – Overview

General insurance refers to insurance policies that provide coverage for risks other than life insurance. These policies protect individuals and businesses against financial loss due to events such as accidents, theft, natural disasters, and liability. General insurance includes a wide range of products, such as motor insurance, health insurance, property insurance, travel insurance, and liability insurance. Unlike life insurance, which pays out a benefit upon the death of the insured or after a set period, general insurance typically covers losses or damages occurring within a specific period, and claims can be made whenever a covered event occurs within that timeframe.

Singapore General Insurance Market

Growth Drivers

Government’s Supportive Regulations for General Insurance

Government regulations play a crucial role in enhancing the Singapore general insurance market by providing a robust framework for oversight and ensuring consumer protection. The Insurance Act 1966, alongside other statutes such as the Policies of Assurance Act 1867 and the Marine Insurance Act 1906, establishes comprehensive guidelines for insurance operations, including licensing requirements and regulatory compliance. The Monetary Authority of Singapore (MAS) enforces these regulations, overseeing both insurers and intermediaries to ensure adherence to legal standards and safeguarding market stability. Recent enhancements to the Policy Owners' Protection Scheme (PPF) and the integration of insurance data into the Singapore Financial Data Exchange (SGFinDex) exemplify the proactive measures taken to streamline processes and improve transparency. By fostering a well-regulated environment, these regulations bolster consumer confidence, support market growth, and promote the overall development of Singapore's general insurance sector.

Challenges

Natural Disaster Risk

Natural disaster risks pose a significant challenge to the growth of the Singapore general insurance market. The frequency and severity of events such as floods, storms, and earthquakes can lead to substantial claims, impacting insurers' profitability and financial stability. These risks necessitate higher premiums and stringent underwriting practices, which may deter potential policyholders and limit market expansion. Additionally, the unpredictability and potential for large-scale damage from natural disasters can strain insurers' capacity to offer comprehensive coverage, thereby constraining the overall growth and development of General Insurance Market in Singapore.

Impact of Escalating Geopolitical Tensions on Singapore General Insurance Market

Escalating geopolitical tensions among countries and spreading across regions could have a significant impact on the growth of Singapore General Insurance Market. Political instability, trade conflicts, and international sanctions can lead to increased volatility and financial market disruptions, affecting insurers' risk assessment and pricing strategies. As geopolitical tensions rise, insurers may face higher claims related to property damage, business interruptions, and political risks, prompting them to adjust premiums and coverage terms. The environment of increased risk and uncertainty can also deter investment and slow market growth. Additionally, heightened geopolitical risks may compel insurers to enhance their risk management practices and reassess their global exposure, further influencing market dynamics in Singapore.

Singapore General Insurance Market

Segmental Coverage

Singapore General Insurance Market – By Insurance Type

On the basis of insurance type, Singapore General Insurance Market is divided into Motor Insurance, Property Insurance, Liability Insurance, Marine Insurance, Accident and Health Insurance, and other (including Engineering Insurance, Aviation Insurance, and Miscellaneous Insurance Products) segments. The accident & health insurance segment holds the highest share in Singapore General Insurance Market by insurance type, due to a heightened demand for health coverage due to increased awareness following the pandemic, rising medical costs, and the relaxation of global travel restrictions. Recent regulatory developments, such as mandatory health insurance for foreign workers and government subsidies, have further supported this growth. As a result, PA&H insurance is expected to continue its expansion in the coming years. Meanwhile, the property insurance segment is expected to record fastest growth rate during the forecast period. The primary driver of this segment is fire insurance, which is compulsory for HDB home purchases and home loans. Additionally, the expansion of the construction sector and large infrastructure investments contribute to the growth of property insurance. With the Building and Construction Authority (BCA) projecting substantial contracts in the construction sector for 2023, property insurance is expected to benefit from this trend.

Singapore General Insurance Market – By Distribution Channel

Based on distribution channel, Singapore General Insurance Market is divided into Direct Channels, Agency Channels, Bancassurance Channels, and Brokers segments. The agency channels segment holds the highest share in Singapore General Insurance Market by distribution channel, due to established trust, deep product knowledge, personalized service, extensive networks, and effective sales strategies. Agents' long-standing relationships, local market expertise, and ability to provide tailored solutions and after-sales support contribute significantly to their dominance. While digital channels are growing, the agency model continues to be a cornerstone of the industry. Followed by, bancassurance channels segment occupying the second-largest share in Singapore's general insurance market primarily due to the extensive customer base of banks, their established trust, and the convenience of offering insurance products alongside other financial services. This distribution model allows for efficient cross-selling, leveraging bank branches as distribution points, and benefits from the existing customer relationship, making it a highly effective channel for insurers.

Singapore General Insurance Market – By Customer Type

Based on customer type, Singapore General Insurance Market is divided into Individuals, Small and Medium-sized Enterprises (SMEs), and Large Corporations segments.

Competitive Landscape

Major players operating in Singapore General Insurance Market include Aon Singapore Pte Ltd, MSIG Insurance (Singapore) Pte Ltd, Swiss Life (Singapore) Pte Ltd, Tokio Marine Life Insurance Singapore Ltd, AIA Singapore Private Limited, The Great Eastern Life Assurance Company Limited, Singapore Life Ltd, Swiss Re Asia Pte Ltd, Liberty Insurance Pte Ltd, and Allianz Insurance Singapore Pte Ltd.

Recent Developments

• In March 2024 - Singapore-based insurtech group Sunday Ins Holding acquired PT KSK Insurance Indonesia, making it one of the largest fully licensed insurtech firms in the region's two largest general insurance markets. Sunday aims to leverage AI, machine learning, and advanced automation to enhance customer experiences across health, car insurance, and other products.

Scope of the Report

By Insurance Type

• Motor Insurance

• Property Insurance

• Liability Insurance

• Marine Insurance

• Accident & Health Insurance

By Distribution Channel

• Direct Channels

• Agency Channels

• Bancassurance Channels

• Brokers

By Customer Type

• Individuals

• Small and Medium-sized Enterprises (SMEs)

• Large Corporations