The general insurance market in Singapore is expected to grow significantly, reaching $8.1 billion in gross written premiums (GWP) by 2029. This represents a compound annual growth rate (CAGR) of 6.2% from $6.0 billion in 2024, according to research by GlobalData.
GlobalData’s findings anticipate an 8% growth in the sector in 2024, supported by economic recovery, escalating healthcare costs, and increased premiums across various insurance lines.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, said Singapore’s general insurance industry has experienced notable growth over recent years, with strong contributions from the construction sector and rising demand for health insurance.
“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 fuelling the demand for health insurance will also support general insurance growth. The trend is expected to continue in 2024,” he said.
PA&H insurance is projected to remain the leading segment in Singapore’s general insurance market, accounting for 23.5% of GWP in 2024.
The segment is anticipated to grow by 9% in 2024, primarily due to rising medical costs and adjustments to health insurance premiums.
In October 2024, the Ministry of Health announced an increase of up to 35% in MediShield premiums, effective April 2025. MediShield, the national health insurance program, includes MediShield Life – a government-managed plan – and optional private coverage provided by insurers.
PA&H insurance is forecast to grow at a CAGR of 6.9% between 2024 and 2029.
Motor insurance, the second-largest line, is expected to make up 19.8% of the market’s GWP in 2024, with projected growth of 9.4% for the year. This expansion aligns with an increase in vehicle registrations, which rose by 30% during the first 10 months of 2024 compared to the same period in 2023, based on data from the Land Transport Authority.
Electric vehicle (EV) adoption has also contributed to the sector’s growth, supported by Singapore’s plan to phase out internal combustion engine vehicles by 2040.
Motor insurance is projected to achieve a CAGR of 4.1% through 2029.
Property insurance is forecast to account for 18.1% of GWP in 2024, with an expected annual growth rate of 5.4%. This growth correlates with increased construction activity, driven by public infrastructure projects.
According to the Building and Construction Authority, total construction demand is forecast to range between $32 billion and $38 billion in 2024, up from $33.8 billion in 2023.
The segment is projected to grow at a CAGR of 6.6% through 2029.
Liability insurance is projected to represent 17.6% of GWP in 2024. Growth in this segment is tied to mandatory policies such as professional indemnity and employer’s liability, which together accounted for 78% of liability insurance business in 2023.
The segment is expected to grow at a CAGR of 6% between 2024 and 2029.
Marine, aviation, transit, financial lines, and other general insurance products are expected to constitute the remaining 20.9% of the market in 2024.
While the general insurance market in Singapore is positioned for growth, economic volatility and geopolitical uncertainty may present challenges to profitability.
Sahoo noted that the next five years offer significant growth opportunities for Singapore’s insurers, but external factors such as global economic shifts may impact their ability to sustain margins.
