SINGAPORE: Singapore’s life insurance sector is expected to hit S$43.6 billion in gross written premiums (GWP) by 2029, with a compound annual growth rate (CAGR) of 4.0% from 2025.
This growth is anticipated to be driven by factors like an ageing population, increased health awareness, and a recovery in consumer spending, as per GlobalData.
According to the Singapore Business Review, despite challenges in 2024 due to global economic uncertainty, inflation, and volatile markets, the sector is forecasted to grow by 3.0% in 2025.
GlobalData analyst Manogna Vangari noted that demographic changes and a growing focus on health are set to boost demand for personal accident and health (PA&H) and whole-life insurance policies.
Whole life insurance is the largest segment, making up around 44.0% of GWP in 2024.
While demand is expected to drop by 4.1% due to inflation and higher interest rates, the segment is forecast to grow by 2.1% in 2025, with a 3.1% CAGR from 2025 to 2029.
Growth will be driven by Singapore’s ageing population, which is expected to make up 18.0% of the total population by 2030.
Endowment insurance, the second-largest segment, is set to make up 32.8% of GWP in 2024, with a 3.7% CAGR through 2029. This growth is driven by higher interest rates and a shift towards wealth-focused products.
PA&H insurance is projected to hold 14.2% of the market share in 2024 and is expected to grow at a 6.6% CAGR over the same period, fuelled by rising healthcare costs and growing health awareness.
The remaining 8.9% of the market in 2024 will consist of general annuity, term life, and other insurance products.
Growth in Singapore’s life insurance industry is mainly driven by demographic changes, increasing demand for life and health insurance, particularly among an increasingly affluent population, said Ms Vangari.
She added that developing products suited to the needs of the rapidly ageing population will be a key focus for insurers in the next five years.
/TISG
Read also: Singapore’s CPF ranks 5th in the 2024 Mercer CFA Institute Global Pension Index
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