The personal accident and health (PA&H) insurance market in Singapore is set to expand significantly, with gross written premiums (GWP) projected to grow from $8.5 billion (US$6.2 billion) in 2024 to $11.7 billion (US$8.6 billion) by 2029.
This represents a compound annual growth rate (CAGR) of 6.6%, according to insights from GlobalData.
The data showed a rising share of PA&H insurance within Singapore’s overall insurance market, increasing from 12.6% in 2020 to a forecasted 17.3% in 2029.
In 2024 alone, the segment was expected to grow by 8.9%, driven by a combination of increased demand for private health insurance and premium rate adjustments.
Aarti Sharma, an insurance analyst with GlobalData, highlighted the key drivers for this growth.
“Singapore’s PA&H insurance has experienced strong growth in 2024, bolstered by heightened health and financial awareness that spurred demand for health insurance products,” she said.
She added that the aging population and adjustments for inflation had supported the PA&H sector. Additionally, the recovery of international tourism has played a role in boosting demand.
The popularity of integrated shield plans (IPs) and supplementary riders offered by private insurers was a significant contributor to growth. These plans complement MediShield Life, a national health insurance program managed by the government.
Data from the Life Insurance Association of Singapore indicated that around 71,000 new IPs were sold during the first half of 2024, bringing total coverage to 2.9 million – equivalent to 71% of the population. Premiums for individual health insurance rose by 7.1% during this period compared to 2023.
Rising healthcare costs are expected to drive further premium increases. In late 2024, Singapore’s Ministry of Health announced that MediShield premiums would increase by up to 35%, phased in over several years, starting in April 2025. The changes aim to expand coverage and raise claim limits for various treatments, according to the ministry.
The aging population is a critical factor in the market’s expansion. As of mid-2024, approximately 20% of Singapore’s population was aged 65 or older, creating heightened demand for health-related insurance products.
At the same time, rising numbers of tourists – up 16.7% year-over-year in October 2024, per official statistics – have contributed to growth in travel insurance, which often includes personal accident coverage.
Sharma noted that the outlook for PA&H insurance in Singapore remains strong.
“The outlook for the PA&H insurance industry in Singapore appears positive, with opportunities for insurers to capitalise on the evolving market dynamics and increasing demand for comprehensive health coverage,” she said.
