Broad-based expansion across segments, but life insurance growth halves and general insurance faces rising claims.

Singapore's finance and insurance sector expanded 4.3% in 2025, a sharp moderation from 7.3% in 2024, driven by broad-based growth across segments but with life insurance decelerating and general insurance buoyed by regulatory reforms.

Sector Growth Moderates in 2025

The sector's full-year 2025 growth of 4.3% represents a significant deceleration from the 7.3% recorded in 2024, according to Ministry of Trade and Industry (MTI) data reported by Human Resources Online. Quarterly trends confirm the slowdown: the finance and insurance sector grew 3.7% year-on-year in Q4 2025, down from 4.7% in Q3. Banking and insurance drove growth during the quarter, while fund management was subdued due to weaker global equity markets.

On a quarter-on-quarter seasonally adjusted basis, however, the sector expanded 5.4% in Q4 2025, reversing a 0.9% contraction in Q3. This indicates that the sector regained momentum late in the year after a mid-year soft patch.

The finance and insurance sector contributed to Singapore's overall GDP expansion, supported by strong performance in manufacturing, wholesale trade, and finance & insurance. MTI attributed the manufacturing sector's strength to AI-related electronics demand, while accommodative financial conditions supported broad-based growth across all finance and insurance segments.

Growth Rate (%)Source: Orionmano Industries

General Insurance Segment Shows Resilience

The general insurance industry in Singapore is projected to grow 6.4% in 2025, according to GlobalData, supported by regulatory developments, economic expansion, and increasing demand for private health insurance. The market is expected to reach S$8.1 billion (US$5.9 billion) in gross written premiums (GWP) by 2029, reflecting a compound annual growth rate (CAGR) of 6.2% from 2024's estimated S$6.0 billion (US$4.4 billion).

Data from the General Insurance Association (GIA) of Singapore shows domestic general insurance gross written premiums rose 8.4% year-on-year to S$6.1 billion (US$4.76 billion) in 2025. Despite the top-line growth, net incurred claims for the domestic segment increased 8.7% year-on-year to US$1.40 billion (S$1.8 billion), an increase of US$112.48 million (S$144.2 million) compared to 2024. Property claims rose following a 3% year-on-year increase in fire incidents to 2,050 cases, alongside several large-scale property losses.

Nevertheless, underwriting performance remained robust. Domestic underwriting profit grew 32% year-on-year to US$225.42 million (S$289 million) in 2025, up from US$170.82 million (S$219 million) in 2024. GIA President Ronak Shah noted that the rise in claims highlights the industry's role in helping businesses and individuals recover financially from road accidents, fires, or overseas crises.

The personal accident and health (PA&H) insurance segment remains the largest in the industry, accounting for 23.8% of GWP in 2025. Driven by rising medical costs and increased tourism, PA&H insurance is projected to grow 7.6%, with a CAGR of 6.8% from 2025 to 2029. Motor insurance, the second-largest segment, is expected to account for 19.8% of GWP in 2025, growing 6.2%, fueled by a 30% increase in new vehicle registrations from January to October 2024 compared to the same period in 2023. Property insurance, the third-largest segment, accounts for 17.9% of GWP in 2025, growing 5.1%, driven by increased construction demand and new public infrastructure projects.

%Source: Orionmano Industries

Life Insurance Growth Decelerates

The life insurance sector achieved 11.3% growth in total weighted new business premiums in 2025, reaching S$6.53 billion, according to the Life Insurance Association (LIA) of Singapore. This follows a 19.7% surge in 2024 to S$5.87 billion, meaning the sector's growth rate nearly halved year-on-year.

The moderation reflects a normalization after a post-pandemic rebound year, rather than a collapse. Annual premium policies continued to see strong uptake, supporting the sector's underlying momentum. Demand for health-related coverage is underpinned by Singapore's aging population: those aged 65 and above are expected to make up 24.1% of the population by 2030, a structural driver that should sustain demand for health-linked life insurance products.

Regulatory and Structural Drivers Underpin Outlook

The overall business environment for finance and insurance in Singapore remains constructive. The Singapore Business Federation's (SBF) Business Sentiment Index rose 1.2 points to 53.4 in Q4 2025, ending a six-month decline. Insurance and banking were among the sectors that "performed positively" during the quarter. The growth confidence index across businesses rose from 55.4 to 57.7, the highest level recorded in 2025, with insurance and banking showing some of the strongest improvement on that measure.

Several regulatory initiatives from the Monetary Authority of Singapore (MAS) are strengthening the operating environment. A streamlined insurance product approval process took effect in November 2024, the Cybersecurity (Amendment) Bill was enacted in May 2024 to enhance data security and digital resilience, and in July 2024, MAS issued Fit and Proper Criteria guidelines to uphold competency and integrity standards within the insurance industry. These measures aim to enhance market stability and consumer confidence.

Looking ahead, the finance and insurance sector is expected to moderate further as global financial conditions tighten, but structural drivers—aging population, regulatory modernization, and AI-related electronics demand—should keep growth above the broader economy. General insurance, supported by regulatory reforms and rising premiums across motor, property, and health segments, is likely to outperform life insurance in the near term.