Report Overview

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

Singapore online insurance market size was estimated at USD 286.05 million in 2022. During the forecast period between 2023 and 2029, the size of Singapore online insurance market is projected to grow at a CAGR of 22.4% reaching a value of USD 1,177.35 million by 2029. Major growth drivers for the Singapore online insurance market include increasing acceptance of innovative technologies, growing demand for electric vehicles, and the easing of travel constraints coupled with governmental incentives. The relaxation of travel restrictions is expected to lead to an upsurge in the demand for travel insurance. This growth is further propelled by an escalation in instances of accidental damage and an improving standard of living among individuals, both contributing to the expansion of the online gadget insurance market. Notably, citizens are inclined to procure insurance not only due to its tax advantages but also as a prerequisite for securing specific loans and ensuring asset protection. Shifting the focus to the Singaporean online insurance market, several key drivers are propelling its growth. The rapid digital transformation across industries, coupled with the increasing tech-savviness of the population, has fostered a conducive environment for the expansion of online insurance services. Also, a significant impetus originates from the impending change in motor insurance. This is brought about by the burgeoning prevalence of electric vehicles (EVs), which seamlessly aligns with the aspirations of Singapore's Green Plan for 2030. As a consequence, this transition has subsequently led to an upswing in the demand for motor insurance within the Singaporean market. Another driving force is the Singapore's robust financial ecosystem and its status as a global business hub have attracted a growing number of consumers seeking efficient and comprehensive insurance solutions. The convenience and accessibility offered by online platforms have significantly contributed to the surge in insurance adoption. Also, strategic government initiatives promoting digitalization and financial inclusion have further fueled the momentum of the online insurance market in Singapore.

Singapore Online Insurance Market – Overview

Singapore online insurance market is a digital platform-based ecosystem within the insurance industry. It encompasses various insurance types, such as life, health, travel, property, and motor insurance. Managed through websites and mobile applications, it adheres to the same regulations set by the Monetary Authority of Singapore as offline insurance. The widespread internet access is expected to bolster growth, contributing to the insurance sector. The government's policy owner protection scheme assures complete coverage for life insurance benefits. Notably, Singapore law maintains uniform commission rates across online and other sales methods. This market employs technology to streamline processes, enhance customer experiences, and offer greater accessibility to insurance products. It allows customers to conveniently research, compare, purchase, and manage policies online, eradicating the need for traditional face-to-face interactions. Key features encompass user-friendly interfaces, instant quotes, online claims processing, and access to policy details.

Singapore Online Insurance Market

Growth Drivers

Advancing Internet Penetration Facilitates Enhanced Use of Technology in the Insurance Sector

Insurers are increasingly leveraging technological advancements like Artificial Intelligence, Internet of Things (IoT), and Blockchain to bolster their capabilities in identifying and thwarting instances of insurance fraud more efficiently. These tools are also proving invaluable in offering behavioral analytics, thereby furnishing insights into individuals' behaviors and aiding insurers in distinguishing legitimate claims. Furthermore, these technologies find utility in curbing exaggerated claims, a tactic employed by fraudsters who attempt to inflate the costs of prior damages and incorporate them into new claims. The integration of Blockchain technology serves the purpose of preventing double dipping, a scenario where policyholders submit claims with multiple insurance companies. The inherent nature of blockchain's distributed ledger technology acts as a safeguard against the approval of repetitive transactions for the same claim. Moreover, the interconnectivity facilitated by smart devices in the IoT realm ensures swift alerts to insurers regarding motor claims, reinforcing the responsiveness of the insurance landscape. This paradigm shift in harnessing technology underscores how the increasing prevalence of internet access is fostering transformative developments within the insurance sector.

Restraints

Increasing Security Concerns

Mounting security concerns are curbing the expansion of Singapore's online insurance market. With an amplified shift towards digital platforms for insurance transactions, consumers and businesses are increasingly wary of cyber threats and data breaches. Fear of compromising personal and financial data hinders the willingness to engage in online insurance activities. To counteract this, robust cybersecurity measures are vital, encompassing encryption, multi-factor authentication, and stringent adherence to regulations. Striking a balance between convenience and security is imperative to restore confidence and drive growth in the online insurance sector.

Impact of COVID-19 on Singapore Online Insurance Market

COVID-19 pandemic had a positive impact on the Singapore online insurance market. Heightened demand for online insurance services, particularly for health and travel coverage, was accompanied by insurers' rapid adaptation through enhanced digital interfaces and customer experiences. Economic uncertainties prompted re-evaluations of premium payments and pricing strategies. Government interventions and regulatory adjustments supported both policyholders and insurers. This digital shift showcased the market's adaptability and innovation. Although challenges emerged, the pandemic accelerated the industry's digital transformation, emphasizing the importance of customer-centric approaches and resilience in reshaping the online insurance landscape.

Singapore Online Insurance Market

Segmental Coverage

Singapore Online Insurance Market – By Enterprise Size

By enterprise size, the Singapore online insurance market is bifurcated into Large Enterprises and SMEs segments. The large enterprises segment held a higher share in the Singapore online insurance market by enterprise size. It can be attributed to their intricate insurance requirements stemming from extensive operations and significant assets. Their capacity to allocate dedicated resources for insurance research and management, alongside financial capability, makes them well-suited for utilizing online platforms. Moreover, their alignment with digital transformation trends enables seamless integration of online insurance solutions into broader risk management strategies. These factors collectively establish large enterprises as prominent users of the digital insurance landscape, capitalizing on the convenience, customization, and accessibility offered by the Singapore online insurance market.

Singapore Online Insurance Market – By Insurance Type

Based on insurance type, the Singapore online insurance market is divided into Life Insurance, Motor Insurance, and Health Insurance segments. The life insurance segment holds the highest share in the Singapore online insurance market by insurance type. Online platforms provide convenient access to a range of life insurance options, aligning with individuals' financial goals. Growing awareness of financial security and digital adoption drives interest in online life insurance offerings. Transparent information, simplified applications, and InsurTech innovations enhance engagement. Also, the Policy Owner Protection Scheme and consistent commission rates for online sales create a secure and equitable environment. This convergence of consumer preferences and accessible technology positions life insurance as a prominent choice in the Singaporean online insurance landscape.

Singapore Online Insurance Market – By End User

Based on end user, the Singapore online insurance market is divided into Insurance Companies, Aggregators, and Third-Party Administrators and Brokers segments.

Competitive Landscape

Major players operating in the Singapore online insurance market include AXA Insurance, AIA Singapore, Prudential Assurance Company, FWD Insurance, Singlife with Aviva, Manulife Singapore, HSBC Singapore, Singapore Life, St. James's Place, and Swiss Life (Singapore) Pte Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2022 - DocDoc, a digital health insurance platform headquartered in Singapore, collaborated with QBE Singapore to introduce a novel group health insurance offering within the nation. QBE, a prominent provider of specialized insurance services, joined forces for this endeavor.

Scope of the Report

By Enterprise Size

• Large Enterprises

• SMEs

By Insurance type

• Life Insurance

• Motor Insurance

• Health Insurance

By End User

• Insurance Companies

• Aggregators

• Third Party Administrators & Brokers

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Singapore Online Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increase in internet penetration
         2. Increase in smart phone usage
      2. Restraints
         1. Lack of personal interaction
         2. Increasing security concern
      3. Opportunities
         1. Growing adoption of advance technologies
         2. Surging government initiatives
      4. Challenges
         1. Limited Understanding among consumers
   3. Product 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 Online Insurance Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Enterprise Size
         1. Large Enterprise
         2. SMEs
      2. By Insurance type
         1. Life Insurance
         2. Motor Insurance
         3. Health Insurance
         4. Others
      3. By End User
         1. Insurance Companies
         2. Aggregators
         3. Third Party Administrators and Brokers
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Singapore Online Insurance Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
6. Impact of Covid-19 on Singapore Online Insurance Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. AXA Insurance
   2. AIA Singapore
   3. Prudential Assurance Company
   4. FWD Insurance
   5. Singlife with Aviva
   6. Manulife Singapore
   7. HSBC Singapore
   8. Singapore Life
   9. St. James's Place
   10. Swiss Life (Singapore) Pte. Ltd.
   11. 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
   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 Online Insurance Market Segmentation

Figure 2       Singapore Online Insurance Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Singapore Online Insurance Market Size, By Value (USD Million), 2019–2029

Figure 5       Singapore Online Insurance Market Share, By Enterprise Size, By Value, 2019–2029

Figure 6     Singapore Online Insurance Market Share, By Insurance type, By Value, 2019–2029

Figure 7       Singapore Online Insurance Market Share, By End User, By Value, 2019–2029

List of Tables

Table 1    Singapore Online Insurance Market Size, By Value (USD Million), 2019–2029

Table 2     Singapore Online Insurance Market Size, By Enterprise Size, By Value, 2019–2029

Table 3     Singapore Online Insurance Market Size, By Insurance type, By Value, 2019–2029

Table 4      Singapore Online Insurance Market Share, By End User, By Value, 2019–2029

Table 5        AXA Insurance Company Overview

Table 6        AXA Insurance Financial Overview

Table 7        AIA Singapore Company Overview

Table 8        AIA Singapore Financial Overview

Table 9        Prudential Assurance Company Overview

Table 10      Prudential Assurance Company Financial Overview

Table 11      FWD Insurance Company Overview

Table 12      FWD Insurance Financial Overview

Table 13      Singlife with Aviva Company Overview

Table 14      Singlife with Aviva Financial Overview

Table 15      Manulife Singapore Company Overview

Table 16      Manulife Singapore Financial Overview

Table 17      HSBC Singapore Company Overview

Table 18      HSBC Singapore Financial Overview

Table 19      Singapore Life Company Overview

Table 20      Singapore Life Financial Overview

Table 21      St. James's Place Company Overview

Table 22      St. James's Place Financial Overview

Table 23      Swiss Life (Singapore) Pte. Ltd. Company Overview

Table 24      Swiss Life (Singapore) Pte. Ltd. Financial Overview