Singapore Finance & Insurance Sector Grew 4.3% in 2025 as Banking and Life Insurance Drove Expansion
Growth moderated from 7.3% in 2024, yet remained within MAS's 4–5% ITM target range.
By Rajesh Iyer·March 18, 2026·4 min readOrionmano Industries
Growth moderated from 7.3% in 2024, yet remained within MAS's 4–5% ITM target range.
Finance & Insurance Sector Growth in 2025
Singapore's finance and insurance sector expanded by 4.3% in 2025, moderating sharply from the 7.3% growth recorded in 2024, according to the Monetary Authority of Singapore (MAS) and data compiled by FPA Financial. The sector's performance remained within the MAS Industry Transformation Map (ITM) 2025 target of 4–5% value-added growth per annum, despite the deceleration. The MAS expects the sector to remain supported by broadly accommodative macroeconomic and financial conditions in 2026, with a low-interest-rate environment sustaining credit activity and insurance demand.
The banking segment was a primary driver of the sector's 2025 growth. Banks benefited from sustained credit intermediation activity amid accommodative financial conditions, as detailed in FPA Financial's February 2026 market review. The low-interest-rate environment encouraged borrowing activity across corporate and retail segments, underpinning lending volumes and fee income. This lending momentum offset headwinds from narrower net interest margins typical of easing cycles, allowing banking operations to contribute meaningfully to overall sector expansion. MAS noted that banking segment growth was a key component of the sector's 4.3% full-year performance.
Insurance Segment: Life Insurance and General Insurance Uplift
The insurance segment recorded robust performance in 2025, with life insurance serving as a major growth engine. Life insurance gross written premiums saw sustained demand, supported by an ageing population, increased health awareness, and a rebound in consumer spending. According to GlobalData, Singapore's life insurance market is expected to grow at a compound annual rate of 4% to reach US$43.6 billion in gross written premiums by 2029. The Life Insurance Association of Singapore reported that as of the first half of 2025, approximately 72% of Singapore's population had Integrated Shield Plans, underscoring the depth of private health coverage penetration.
The general insurance industry is projected to grow 6.4% in 2025, reaching S$8.1 billion in gross written premiums by 2029, per GlobalData forecasts. Personal Accident & Health (PA&H) insurance, the largest general insurance line, accounted for 23.8% of GWP in 2025, with an expected growth rate of 7.6% driven by rising medical costs and increased tourism. Property insurance, the third-largest line, is expected to grow 5.1% in 2025, supported by increased construction demand and new public infrastructure projects such as the expansion of the rail network by 360 kilometres by 2030 and major road projects including the Changi Northern Corridor and North-South Corridor. PA&H insurance grew at a robust 15.7% CAGR during 2021–2025, reflecting sustained healthcare spending and an ageing demographic profile.
Fund Management and Outlook
The fund management segment saw more subdued activity in 2025, reflecting weaker global market conditions and a pullback in global equity markets in November 2025, according to FPA Financial's analysis. This contrasted with the stronger performance in banking and insurance. Despite this drag, the overall sector is on track to meet the Financial Services ITM 2025 target of 4–5% value-added growth per annum. MAS Managing Director Chia Der Jiun noted in July 2025 that the sector's average growth rate of 4.7% from 2021 to 2024 was already on track to meet the ITM target between 2021 and 2025. The sector created net jobs of 4,400 annually between 2021 and 2024, with over 90% of these positions going to locals.
Looking ahead to 2026, the MAS expects accommodative macroeconomic and financial conditions to persist, supporting sector resilience. The low-interest-rate environment is likely to continue facilitating credit intermediation and insurance demand, while regulatory developments—including streamlined product approval processes and updated fit-and-proper criteria for the insurance sector—provide structural support. The finance and insurance sector appears positioned for sustained, if moderated, expansion within the ITM's growth framework.