Research suggests that the Singapore life insurance industry will grow to $77 billion by 2027, accounting for gross written premiums (GWP). According to researcher GlobalData, the rise will be driven by the upsurge in demand for life insurance, which in turn is caused by awareness from the global pandemic.
This growth is equal to a compound annual growth rate (CAGR) of 9.8%, accounting for the period between 2022 and 2027. Last year, the state recorded an increase of 13.3% for its life insurance sector, with a further 10.9% growth this year.
In a report from the Singapore Business Review, GlobalData senior insurance analyst Shabbir Ansari said that the industry growth is expected to slow down from 2022 onwards due to slow economic growth, rising inflation, and global geopolitical uncertainties.
Whole life insurance accounted for the largest segment in the country’s market at 50.3% of the GWP share. The segment is still expected to grow at a rate of 10% through 2027. The study also found that a large proportion of whole-life premiums in Singapore come from single premium policies coming from the large affluent population.
“Singapore has one of the largest concentrations of high net-worth individuals (HNWI). The share of single premium policies in the overall life insurance GWP has increased from 32.3% in 2019 to 49.7% in 2022,” Ansari said.
The growth of the Singapore life insurance sector coincides with industry insiders’ expectations for the Hong Kong insurance market. According to a report, Chinese spending for HK-based insurance is expected to return to pre-pandemic levels in 2024.
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