Singapore’s general insurance industry to be worth $5.1bn by 2026

Written by Michael Griffiths

16/11/2022

The general insurance industry in Singapore is set to grow at a compound annual growth rate (CAGR) of 7.2% to 2026, GlobalData has stated.

This would see Singapore’s general insurance industry climb from SGD4.7bn ($3.5bn) in 2021 to SGD6.6 bn ($5.1bn) in 2026, in terms of gross written premium (GWP).

According to GlobalData, the growth in the general insurance segment in the country is expected to remain high over the next five years, likely led by private health insurance and increased demand for property insurance from large infrastructure projects. The industry is projected to grow by 7.9% in 2022 and 6.7% in 2023, driven by strong uptake of property insurance, which registered the highest growth of 14.1% in 2021.

Property insurance is the second largest general insurance line in Singapore, accounting for a 19.5% share of GWP in 2021. GlobalData has forecast that property insurance in the country will grow by 9.9% in 2022, mainly supported by increased construction activity in the country.

Personal accident and health (PA&H) insurance was the third largest general insurance line in Singapore, accounting for an 18.6% share in terms of GWP in 2021. PA&H insurance is expected to grow at a CAGR of 7.5% in the period between 2021 and 26, with this sector driven by increased awareness for financial planning and protection.

GlobalData insurance analyst, Rokkam Eswara Jyothi, commented: “Singapore’s general insurance penetration at 0.8% in 2021 is lower than other regional countries like South Korea (5.1%), Japan (1.8%), China (1.2%) and Hong Kong (1.6%), indicating high growth opportunity.

“Healthcare inflation, which has been on the rise during the last few years, has resulted in a high cost of claims for insurers. To maintain profitability, insurers will be prompted to increase their premiums for health and accident insurance policies.”

Jyothi added: “Singapore’s general insurance industry is projected to recover backed by higher per capita income, and growing household spending that will drive the demand for household and commercial property, automobiles, and private health insurance.”

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