Report Overview

Singapore Motor Insurance Market - Industry Trends & Forecast Report, 2029

Singapore Motor Insurance Market size was estimated at USD 8.11 billion in 2022. During the forecast period between 2023 and 2029, the size of Singapore Motor Insurance Market is projected to grow at a CAGR of 2.07% reaching a value of USD 9.17 billion by 2029. The Singapore Motor Insurance Market is propelled by the city-state's high vehicle ownership rates, stringent regulatory requirements mandating motor insurance, increasing disposable income, and a growing awareness of the importance of insurance coverage. Also, advancements in technology, such as telematics and data analytics, contribute to personalized and innovative insurance offerings. The competitive landscape, regulatory reforms, and the overall economic environment also play crucial roles in shaping the dynamics of the Singapore Motor Insurance Market.

Motor Insurance – Overview

Motor insurance, also known as auto or car insurance, is a financial protection plan for vehicle owners against financial losses arising from accidents, theft, or other unforeseen events. It covers damages to the insured vehicle, third-party liabilities, and medical expenses. Typically mandatory, motor insurance offers different coverage levels, including comprehensive and third-party options. Premiums are determined by factors such as the vehicle's value, driver's history, and coverage chosen. The industry continually evolves with advancements like telematics and usage-based insurance, enhancing risk assessment. Motor insurance plays a crucial role in ensuring financial security and legal compliance for vehicle owners worldwide.

Singapore Motor Insurance Market

Growth Drivers

Increasing Vehicle Ownership

A rapidly growing number of vehicle ownership in the country drives Singapore Motor Insurance Market. As more individuals acquire automobiles, the demand for motor insurance surges, propelling market expansion. The growth driver is fueled by the rising affluence and urbanization in Singapore, leading to a higher number of residents purchasing cars. The motor insurers respond with innovative policies and competitive offerings to cater to the growing market, contributing significantly to the overall dynamism of Singapore Motor Insurance Market.

Challenges

Economic Uncertainties

The Singapore Motor Insurance Market faces a significant restraint in the form of heightened price sensitivity among consumers. With economic factors influencing purchasing decisions, the market encounters challenges in maintaining premium pricing. This sensitivity limits the flexibility for insurers to adjust rates, potentially affecting profitability and product innovations. As consumers prioritize cost-effectiveness, insurers must navigate a delicate balance between competitive pricing and sustainable business models.

Impact of Escalating Geopolitical Tensions on Singapore Motor Insurance Market

Escalating geopolitical tensions, notably the Russia-Ukraine war, have significantly impacted the Singapore Motor Insurance Market. Heightened uncertainties and geopolitical risks have led to increased premiums and reduced insurer appetites for risk, affecting policy pricing and coverage. The war has contributed to a global rise in commodity prices, impacting repair and replacement costs for vehicles, thereby influencing insurance rates. Also, the geopolitical instability has heightened the perception of risk, prompting insurers to reassess their underwriting strategies. Singapore, being a regional financial hub, faces spillover effects from global events, resulting in a challenging environment for the motor insurance sector. Insurers are navigating increased volatility, necessitating adaptive strategies to address evolving geopolitical dynamics and maintain market stability.

Singapore Motor Insurance Market

Segmental Coverage

Singapore Motor Insurance Market – By Policy Type

Based on policy type, Singapore Motor Insurance Market is divided into Third-party Liability Insurance, Comprehensive Coverage, and Collision Coverage segments. Comprehensive coverage is the largest policy type segment of the Singapore Motor Insurance Market, reflecting a robust demand for motor insurance for extensive protection. The segment offers a wide range of benefits, including coverage for damages caused by accidents, theft, and natural disasters. As Singaporean motorists prioritize comprehensive insurance, the market trends indicate a growing emphasis on holistic protection, making comprehensive coverage the dominant and pivotal segment in meeting the diverse needs of vehicle owners in the region.

Singapore Motor Insurance Market – By Vehicle Type

Based on vehicle type, Singapore Motor Insurance Market is divided into Passenger Vehicles and Commercial Vehicles segments. The passenger vehicles segment is a larger segment, reflecting the dominant share of insurance activities related to private cars. The segment encompasses coverage for personal vehicles, emphasizing the significance of insuring individual automobiles in the Singapore market. While the commercial vehicles segment is also a significant segment, the passenger vehicles segment stands out as the most substantial and influential component, indicative of the greater focus on insuring privately owned vehicles in the motor insurance landscape of Singapore.

Singapore Motor Insurance Market – By Distribution Channel

Based on distribution channel, Singapore Motor Insurance Market is divided into Insurance Agents/Brokers, Direct Response, and Banks segments. The insurance agents/brokers segment is the largest distributional channel segment in the Singapore Motor Insurance Market. The segment dominates the market, showcasing the significant role played by intermediaries in facilitating motor insurance transactions. Insurance agents and brokers serve as crucial intermediaries, connecting consumers with insurance products and providing valuable assistance in navigating the complexities of motor insurance policies. Their widespread presence and expertise contribute to the prominence of the insurance agents/brokers segment in the Singapore Motor Insurance Market.

Competitive Landscape

Major players in the Singapore Motor Insurance Market include Singapore Life Ltd, MSIG Insurance (Singapore) Pte Ltd, Tokio Marine Life Insurance Singapore Ltd, Etiqa Insurance Pte Ltd, The Great Eastern Life Assurance Company Ltd, Liberty Insurance Pte Ltd, United Overseas Insurance Ltd, Ecics Limited, and AVIVA Ltd. To enhance their market share and expand their reach, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In September 2022: MSIG Insurance (MSIG) and Klook, through a distribution relationship, offer TravelCare insurance as an add-on when Singaporean clients book travel-related activities and services via Klook's mobile app or website.

• In March 2022: AXA Singapore ceased to offer Motor and General Insurance Businesses. AXA Singapore operations were merged with the existing HDFC Life Singapore Business.

Scope of the Report

By Policy Type

• Third-party Liability Insurance

• Comprehensive Coverage

• Collision Coverage

By Vehicle Type

• Passenger Vehicles

• Commercial Vehicles

By Distribution Channel

• Insurance Agents/Brokers

• Direct Response

• Banks

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3.  Singapore Motor Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing vehicle ownership
         2. The rise of electric vehicles
      2. Restraints
         1. Regulatory challenges
         2. Price sensitivity
      3. Opportunities
         1. Increased collaboration between Insurtech firms and traditional insurers
         2. Usage-Based Insurance (UBI)
      4. Challenges
         1. Fraud such as encompassing exaggerated injury reports and inflated vehicle damage
         2. Changing consumer preferences
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4.  Singapore Motor Insurance Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share and Forecast
      1. By Policy Type
         1. Third-party Liability Insurance
         2. Comprehensive Coverage
         3. Collision Coverage
         4. Others
      2. By Vehicle Type
         1. Passenger Vehicles
         2. Commercial Vehicles
         3. Others
      3. By Distribution Channel
         1. Insurance Agents/Brokers
         2. Direct Response
         3. Banks
         4. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Singapore Motor Insurance Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Escalating Geopolitical Tension on Singapore Motor Insurance Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Singapore Life Ltd
   2. MSIG Insurance (Singapore) Pte Ltd
   3. Tokio Marine Life Insurance Singapore Ltd
   4. Etiqa Insurance Pte Ltd
   5. The Great Eastern Life Assurance Company Ltd
   6. Liberty Insurance Pte Ltd
   7. United Overseas Insurance Ltd
   8. Ecics Limited
   9. AVIVA Ltd
   10. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.  Qualitative Research
      1.  Primary & Secondary Research
   2.  Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Singapore Motor Insurance Segmentation

Figure 2       Singapore Motor Insurance Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Singapore Motor Insurance Market Size, By Value (USD Billion), 2019–2029

Figure 5       Singapore Motor Insurance Market Share, By Policy Type, By Value, 2019–2029

Figure 6       Singapore Motor Insurance Market Share, By Vehicle Type, By Value, 2019–2029

Figure 7       Singapore Motor Insurance Market Share, By Distribution Channel, By Value, 2019–2029

List of Tables

Table 1    Singapore Motor Insurance Market Size, By Value (USD Billion), 2019–2029

Table 2    Singapore Motor Insurance Market Share, By Policy Type, By Value, 2019–2029

Table 3    Singapore Motor Insurance Market Share, By Vehicle Type, By Value, 2019–2029

Table 4    Singapore Motor Insurance Market Share, By Distribution Channel, By Value, 2019–2029

Table 5        Singapore Life Ltd Company Overview

Table 6        Singapore Life Ltd Financial Overview

Table 7        MSIG Insurance (Singapore) Pte Ltd Company Overview

Table 8        MSIG Insurance (Singapore) Pte Ltd Financial Overview

Table 9        Tokio Marine Life Insurance Singapore Ltd Company Overview

Table 10      Tokio Marine Life Insurance Singapore Ltd Financial Overview

Table 11      Etiqa Insurance Pte. Ltd Company Overview

Table 12      Etiqa Insurance Pte. Ltd Financial Overview

Table 13      The Great Eastern Life Assurance Company Ltd Company Overview

Table 14      The Great Eastern Life Assurance Company Ltd Financial Overview

Table 15      Liberty Insurance Pte. Ltd Company Overview

Table 16      Liberty Insurance Pte. Ltd Financial Overview

Table 17      United Overseas Insurance Ltd Company Overview

Table 18      United Overseas Insurance Ltd Financial Overview

Table 19      Ecics Limited Company Overview

Table 20      Ecics Limited Financial Overview

Table 21      AVIVA Ltd Company Overview

Table 22      AVIVA Ltd Financial Overview