Singapore life insurance industry to top 13% growth in 2022

Written by Michael Griffiths

19/10/2022

The Singapore life insurance industry is estimated to grow by 13.3% in 2022, in terms of gross written premiums (GWP).

This is despite prevailing global economic woes and geopolitical tensions, according to research from GlobalData.

The data and analytics company has forecast the life insurance GWP market in Singapore to grow at a compound annual growth rate (CAGR) of 10.2% between 2021 and 2026. This compares to the 11.1% CAGR recorded during the period between 2017 and 2021.

GlobalData suggested this growth will be primarily driven by a “sustained rise in demand” for single premium linked and non-linked life insurance products due to their attractive returns, a strong demand for traditional life products, as well as the personalisation of products and services.

Insurance analyst at GlobalData, Manogna Vangari, commented: “Better returns on investment-linked life insurance (ILI) products as compared to bank savings products have supported the demand for life insurance.

“ILI products have witnessed more than 30% growth in 2021 and is expected to grow by 9.8% in 2022. This trend is expected to continue in 2023, which will help the Singaporean life insurance segment to remain resilient despite worsening economic conditions.”

Traditional term life and whole life insurance are also expected to witness high growth in Singapore during 2022, of 11.2% and 20.6%, respectively. GlobalData suggested this growth will be supported by increased awareness about financial planning and protection following COVID, as well as increased customisation of these products.

“The pandemic-driven change in consumer demand and their purchasing behaviour has prompted insurers to focus on personalisation of products and services,” Manogna added.

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