Life insurance - Singapore

Singapore

The Life insurance market market in Singapore is expected to reach a projected market size (gross written premium) of US$45.88bn in 2024.
Furthermore, the average spending per capita in the Life insurance market market is anticipated to amount to US$7.58k in the same year.
It is projected that the gross written premium will display an annual growth rate (CAGR 2024-2028) of 6.41%, resulting in a market volume of US$58.83bn by 2028.
In comparison to other countries worldwide, the United States is expected to generate the highest gross written premium of US$1,271.0bn in 2024.
Singapore's life insurance market is thriving due to its high economic growth, robust regulatory framework, and strong consumer demand for protection products.

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Analyst Opinion

The Life insurance market in Singapore has been experiencing steady growth and development in recent years.

Customer preferences: Customers in Singapore have shown a growing interest in life insurance products that offer not only financial protection but also investment opportunities. They are increasingly looking for policies that provide comprehensive coverage and flexibility to adapt to their changing needs over time.

Trends in the market: One notable trend in the Singaporean life insurance market is the increasing popularity of digital insurance platforms. Insurers are leveraging technology to offer more convenient and accessible services to customers, such as online policy purchases and claims processing. Additionally, there is a growing demand for customizable insurance products that cater to specific lifestyle and health needs of individuals in Singapore.

Local special circumstances: Singapore's strategic position as a financial hub in Asia has attracted numerous global insurance companies to establish their presence in the country. This has led to a highly competitive market environment where insurers are constantly innovating and differentiating their offerings to attract and retain customers. Moreover, the government's initiatives to promote financial literacy and planning have also contributed to the growing awareness and uptake of life insurance among Singaporeans.

Underlying macroeconomic factors: The stable economic growth and increasing affluence in Singapore have played a significant role in driving the demand for life insurance products. As individuals seek to safeguard their wealth and ensure financial security for their families, the need for comprehensive life insurance coverage has become more pronounced. Additionally, the aging population in Singapore has led to a greater emphasis on retirement planning and long-term financial security, further fueling the growth of the life insurance market in the country.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.