Singapore’s general insurance industry is projected to grow at a compound annual growth rate (CAGR) of 6.2% from SGD6.0 billion ($4.4 billion) in 2024 to SGD8.1 billion ($5.9 billion) in 2029, in terms of gross written premiums (GWP), according to GlobalData, a leading data and analytics company.

GlobalData’s Insurance Database indicates that the general insurance industry in Singapore is poised for 8.0% growth in 2024, driven by an economic recovery, escalating healthcare costs, and rising premium rates across general insurance lines.

Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “The general insurance industry in Singapore has witnessed a high growth trend over the last three years, driven by a robust performance of the construction sector. Rising healthcare costs and an aging population that is fueling the demand for health insurance will also support general insurance growth. The trend is expected to continue in 2024.”

PA&H insurance is the largest line of business in the Singaporean general insurance industry and is estimated to account for a 23.5% share of the general insurance GWP in 2024. PA&H insurance is forecast to grow by 9.0% in 2024, primarily due to escalating medical costs.  

Rising premium prices for health insurance policies will also support PA&H insurance growth. In October 2024, the Ministry of Health (MOH) announced that premiums for MediShield, the national health insurance scheme, will surge by up to 35% starting April 2025. MediShield premiums are collected by private insurers, and comprise MediShield Life, which is administered by the government, and additional private insurance coverage managed by the insurers. PA&H insurance is expected to grow at a CAGR of 6.9% during 2024-29.

Motor insurance is the second-largest business line, which is anticipated to account for a 19.8% share of general insurance GWP in 2024. It is expected to register a 9.4% growth in 2024, driven by an increase in vehicle sales. According to the Land Transport Authority, the registration of new vehicles increased by 30% during Jan-Oct 2024 compared to the same period in 2023.

The sales of electric vehicles (EVs) have also shown significant growth, which will support motor insurance growth. The Singapore government’s plan to phase out internal combustion engine (ICE) vehicles and run all vehicles on cleaner energy by 2040 has bolstered EV sales in 2024. This upward trend is likely to persist in 2025. Motor insurance is forecast to grow at a CAGR of 4.1% during 2024-29.

Property insurance is the third-largest business line, which is projected to account for 18.1% share of general insurance GWP in 2024. It is forecast to grow by 5.4% in 2024, driven by an increase in construction activities. As per the Building and Construction Authority (BCA), the total construction demand in 2024 is projected between SGD32 billion and SGD38 billion, as compared to the SGD33.8 billion in 2023. The launch of new public infrastructure projects will further support property insurance to grow at a CAGR of 6.6% during 2024-29.

Liability insurance is projected to account for 17.6% share of the general insurance GWP in 2024. It’s growth will be supported by mandatory classes such as professional indemnity and employer’s liability insurance, which accounted for 78% of the total liability insurance business in 2023. Liability insurance is expected to grow at a CAGR of 6.0% during 2024-29.

Marine, Aviation, and Transit (MAT), financial lines and other general insurance products are estimated to account for the remaining 20.9% share of the general insurance GWP in 2024.

Sahoo concludes: “The general insurance industry in Singapore is well-positioned for sustained growth over the next five years. However, global economic volatility and geopolitical uncertainities might pose a challenge for insurers to maintain profitability.”