The sector eased from 7.3% in 2024, with accommodative financial conditions supporting credit intermediation and life insurance performance.

Sector Growth Trend: 2023–2025

Singapore's finance and insurance sector expanded by 4.3% in 2025, moderating from 7.3% in 2024, according to FPA Financial Services Research. The deceleration marks a return to more measured growth following an outsized 2024 performance, which itself had nearly doubled the 3.1% expansion recorded in 2023 (Human Resources Online). The 2024 figure of 7.3% cited by FPA slightly exceeds the 6.8% estimate published by Singapore's Ministry of Trade and Industry (MTI), as reported by Human Resources Online, reflecting minor methodological differences between sources; both sources converge on the direction and magnitude of the trend.

The sector accounted for 13.8% of Singapore's GDP in 2024, per MAS data, underscoring its structural importance as a pillar of the economy. Growth in 2025 was concentrated in banking and insurance, with the fund management segment lagging due to weaker global market conditions.

Growth Rate (%)Source: Orionmano Industries

Banking: Sustained Credit Intermediation

Banks were a primary driver of sector growth in 2025, benefiting from sustained credit intermediation activity amid accommodative financial conditions (FPA Financial Services Research). The Monetary Authority of Singapore (MAS) maintained a supportive macroeconomic and financial policy stance through the year, keeping borrowing costs low and encouraging lending flows to households and businesses.

While headline loan growth moderated relative to the post-pandemic rebound, the volume of credit intermediation remained healthy, particularly in mortgage lending and corporate loans to trade-related and services industries. Singapore's broader economy expanded by approximately 4% in 2024, with trade-related sectors and finance & insurance as key contributors (MAS, Recent Economic Developments in Singapore, 24 Jan 2025). The banking segment's performance in 2025 reflected continued demand for working capital and investment financing, even as global trade uncertainties created headwinds for cross-border activity.

Insurance: Life and General Segments in Focus

The insurance segment supported overall sector growth through robust life insurance performance (FPA Financial Services Research). Life insurers benefited from sustained demand for savings and protection products in a low-interest-rate environment, which enhanced policy affordability and drove premium inflows.

In the general insurance segment, the domestic market recorded 8.4% year-on-year growth in gross written premiums in 2025, reaching US$4.76 billion (S$6.1 billion), according to data from the General Insurance Association (GIA) of Singapore. Combined gross written premiums for domestic and offshore segments rose 3.7% to US$8.74 billion (S$11.2 billion). Net incurred claims increased 8.7% year-on-year to US$1.40 billion (S$1.8 billion), driven primarily by motor and property insurance. Motor insurance claims rose 11% year-on-year despite a stable accident count, attributed to higher accident severity and road traffic fatalities reaching a ten-year high. Property claims rose following a 3% increase in fire incidents to 2,050 cases.

Despite the elevated claims environment, underwriting profitability strengthened. Domestic underwriting profit rose 32% year-on-year to US$225.42 million (S$289 million), up from US$170.82 million (S$219 million) in 2024. The combined ratio—a key measure of underwriting efficiency—stood at 86% in 2024, indicating robust claims and expense management (GlobalData, cited by Insurance Asia). The Personal Accident & Health segment remained the largest general insurance line, accounting for 23.8% of GWP in 2025, with 7.6% growth driven by rising medical costs and increased tourism (GlobalData).

Fund Management and Outlook

The fund management segment experienced more subdued activity in 2025, weighed down by weaker global market conditions (FPA Financial Services Research). A pullback in global equity markets in November 2025 dampened asset valuations and reduced trading volumes, tempering fee income for fund managers. This contrasts with 2024, when fund management benefited from elevated trading activity and strong equity market performance, contributing to broad-based sector growth (Human Resources Online; The Straits Times via SMU Business).

MAS projects the finance and insurance sector will remain supported by broadly accommodative macroeconomic and financial conditions in 2026 (FPA Financial Services Research). A low-interest-rate environment is expected to continue facilitating credit intermediation and sustaining life insurance demand. However, the regulator has cautioned that the pace of recent years is unlikely to persist, as the industry braces for slower global growth amid tariff uncertainties and trade tensions (The Straits Times, 15 Jul 2025). The sector's average growth rate of 4.7% from 2021 to 2024 remains on track to meet the Industry Transformation Map 2025 target of 4% to 5% per annum.

For 2026, banking and general insurance are likely to maintain steady momentum, while fund management will remain sensitive to global equity market conditions. The general insurance market is projected to grow at a compound annual rate of 6.2% through 2029, reaching S$8.1 billion in GWP, supported by regulatory developments, economic expansion, and ageing population-driven demand for health insurance (GlobalData, cited by Insurance Asia). The sector's overall growth trajectory will hinge on the interplay between domestic policy support and external demand conditions.