Singapore’s life insurance market is on track to reach$59.5 billion in gross written premiums (GWP) by 2029, growing at a compound annual growth rate (CAGR) of 4% between 2025 and 2029, according to a report by GlobalData.
Key drivers of this growth include an aging population, increased focus on health, and a rebound in consumer spending.
GlobalData’s analysis projects a 3% growth in 2025 as economic recovery bolsters consumer spending.
Additionally, shifting demographics and rising awareness of financial protection are expected to sustain demand for insurance products, particularly those targeting life and health risks.
Manogna Vangari, Insurance Analyst at GlobalData, said the life insurance sector in Singapore is projected to experience another year of contraction in 2024 extending a downturn that began in prior years.
“This decline can be attributed to the uncertainty in the global macroeconomic environment, sustained economic volatility, and rising inflation,” she said.
This is despite data from the Life Insurance Association Singapore (LIA Singapore) reporting a 23.5% year-over-year rise in weighted new business premiums in the first three quarters of 2024. In-force premiums for group life and health insurance also grew, reaching $2.5 billion, reflecting increased consumer interest in financial protection amid economic uncertainty.
However, Vangari said growth is anticipated to resume in 2025, fuelled by changing demographics and a stronger focus on health and wellness, particularly through personal accident and health (PA&H) insurance and whole life policies.
Whole life insurance remains the largest segment in Singapore’s life insurance market, predicted to account for 44% of GWP in 2024.
While this segment is projected to decline by 4.1% in 2024 due to inflation and rising interest rates, a recovery is expected in 2025 with a 2.1% growth, driven by the aging population and longer life expectancy. Over the 2025-2029 period, whole life insurance is expected to grow at a 3.1% CAGR.
The report highlighted that single-premium policies form a substantial portion of whole life insurance premiums, particularly due to demand from the affluent demographic.
With individuals aged 65 and older projected to make up 18% of Singapore’s population by 2030, demand for these long-term coverage products is anticipated to rise.
Endowment insurance is the second-largest segment, forecasted to represent 32.8% of GWP in 2024. This segment is expected to expand at a 3.7% CAGR between 2025 and 2029, driven by higher interest rates and a preference for wealth-oriented insurance solutions.
PA&H insurance is projected to account for 14.2% of GWP in 2024, reflecting growing demand for health-related products amid rising medical costs. The segment is expected to grow at a 6.6% CAGR over the forecast period, the fastest growth among all life insurance categories.
Term life, general annuities, and other products are predicted to make up the remaining 8.9% of the market in 2024.
GlobalData’s report suggests that the aging population will continue to influence market strategies, with insurers tailoring their offerings to meet the needs of older consumers.
Vangari noted that demographic changes are likely to remain central to product development efforts over the next five years.
“The life insurance industry growth in Singapore is largely attributed to demographic shifts, bolstering demand for life and health insurance products, particularly among an increasingly affluent population,” she said.
She added that customised solutions, such as single-premium policies and whole life coverage, are anticipated to see significant traction.