Singapore life insurance industry grows 19.7% in 2024
Singapore’s life insurance industry recorded robust growth in 2024, with total weighted new business premiums reaching S$5.87 billion.
This marks a 19.7% increase from the previous year, the Life Insurance Association Singapore (LIA) reported.
Investment-linked plans (ILPs) emerged as a key growth driver, surging 41% year-on-year to S$2.25 billion, as consumers sought wealth accumulation opportunities amid economic uncertainty.
Non-participating products also showed strong performance, growing 19.2% to S$2.19 billion, while participating products saw a slight 2.7% decline.”The life insurance industry’s recovery in 2024 has set a strong foundation for continued growth,” said LIA Singapore president Dennis Tan. “While interest rate volatility and geopolitical uncertainties continued to pose challenges, the sector has remained resilient and agile.”
The industry reported significant growth in health insurance coverage, with approximately 40,000 more Singaporeans and permanent residents covered by Integrated Shield Plans (IPs) compared to 2023.
Currently, 2.97 million lives – about 71% of Singapore residents – are protected by IPs providing coverage beyond MediShield Life.Claims payouts increased substantially in 2024, with the industry paying out S$18.12 billion to policyholders and beneficiaries, up 33.4% from 2023. Of this amount, S$16.18 billion was for matured policies, while S$1.94 billion covered death, disability, and critical illness claims.
Looking ahead, Tan expressed cautious optimism for 2025, highlighting opportunities in digital transformation and sustainable insurance products.
However, he noted the persistent challenge of medical inflation, expected to rise by 12% in Singapore, emphasizing the need for collaborative action among insurers, medical providers, policymakers, and consumers to maintain healthcare affordability.With medical inflation projected at 12%, how is their insurance sector bracing for the future? Share your thoughts below.