Moderation from 7.3% in 2024 as fund management lags; life insurance new business premiums up 7.7% in H1.

Sector Growth Overview

Singapore’s finance and insurance sector expanded 4.3% in 2025, moderating sharply from the 7.3% growth recorded in 2024, according to the FPA Financial Services Market View published in February 2026. The deceleration reflects a normalization after the post-pandemic rebound, with banking and insurance segments serving as the primary growth engines. Growth in these segments was supported by sustained credit intermediation activity under accommodative financial conditions and robust performance in life insurance. In contrast, the fund management segment experienced subdued activity, weighed down by a pullback in global equity markets in November 2025 that muted investment inflows and asset valuations across the sector.

Year-on-Year Growth (%) (%)Source: Orionmano Industries

Banking and Life Insurance Drive Expansion

Banks benefited from sustained credit intermediation activity amid accommodative financial conditions, according to FPA. The low-interest-rate environment supported borrowing demand and loan growth, contributing to the sector’s overall resilience.

The life insurance segment delivered particularly strong performance. Weighted new business premiums reached US$2.33 billion (S$2.99 billion) in the first half of 2025, up 7.7% year-on-year, data from the Life Insurance Association Singapore (LIA) showed. Annual premium policies drove this growth, rising 22% YoY to US$1.76 billion (S$2.26 billion). Single premium policies declined 21.3% to US$563.86 million (S$722.9 million), reflecting a shift in consumer preferences toward recurring-premium products.

Investment-linked policies (ILPs) continued to be a key growth driver, with weighted premiums rising 31.3% YoY to US$998.4 million (S$1.28 billion) in H1 2025. ILPs accounted for 43% of total new business, underscoring strong demand for products that combine insurance protection with market-linked investment exposure. The total sum assured reached US$55.69 billion (S$71.4 billion), a 1.7% YoY increase. Financial adviser representatives accounted for 42.6% of this amount, while tied representatives made up 29.9%.

Notably, despite the growth in total premiums and sum assured, the number of policies sold declined 18.6% YoY to 579,343. LIA Singapore stated that this suggests consumers are purchasing fewer but more comprehensive policies, opting for higher coverage or investment value per plan—a trend aligned with broader shifts toward quality over volume in financial planning.

General Insurance Segment Performance

The domestic general insurance segment recorded gross written premiums of US$4.76 billion (S$6.1 billion) in 2025, an 8.4% year-on-year increase, according to 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 for the domestic segment increased 8.7% YoY to US$1.40 billion (S$1.8 billion), an uptick of US$112.48 million (S$144.2 million) compared to 2024. The increase was observed across several business segments, led by motor and property insurance. Motor insurance claims rose 11% YoY despite the total number of accidents remaining stable, a divergence GIA attributed to higher accident severity. Road traffic fatalities reached a 10-year high during the year. Property claims also climbed, following a 3% YoY rise in fire incidents to 2,050 cases, as reported by the Singapore Civil Defence Force, alongside several large-scale property losses.

Despite the higher claims environment, underwriting performance remained strong. Domestic underwriting profit grew 32% YoY to US$225.42 million (S$289 million) in 2025, up from US$170.82 million (S$219 million) in 2024. The improvement reflects disciplined pricing and effective risk management across the industry.

Forward Outlook and Broader Context

Looking ahead to 2026, the Monetary Authority of Singapore (MAS) expects the finance and insurance sector to remain supported by broadly accommodative macroeconomic and financial conditions, according to the FPA report. A continued low-interest-rate environment is anticipated to sustain credit demand and support insurance product sales, particularly for investment-linked and savings-oriented products.

Broader business sentiment indicators reinforce this positive outlook. The Singapore Business Federation’s Business Sentiment Index rose 1.2 points to 53.4 in Q4 2025, ending a six-month decline. The insurance and banking sectors were among those that performed positively during the quarter, with growth confidence across businesses rising from 55.4 to 57.7—the highest level recorded in 2025. On policy sentiment, sector-level views were strongest in IT and insurance and banking, according to the SBF survey.

The general insurance market is forecast to grow 6.4% in 2025, according to GlobalData via Insurance Business Magazine, with the personal accident and health segment projected to remain the largest at 23.8% of gross written premiums. Rising medical costs, an ageing population (with those aged 65 and above expected to make up 24.1% of the population by 2030), and increased tourism are expected to drive health-related coverage demand through 2029.

Industry analysts project the Singapore life and non-life insurance market, valued at US$6.23 billion in 2025, will grow at a CAGR of 10.44% through 2031, reaching US$11.3 billion. Non-life lines commanded 77.95% of premiums in 2025, but life products are projected to deliver an 11.54% CAGR to 2031, positioning them as the primary engine of future growth. Motor insurance remains the largest non-life contributor, supported by controlled vehicle numbers, premium vehicle values, and consistent Certificate of Entitlement renewals.

The sector enters 2026 on a foundation of moderating but sustained growth, with accommodative monetary conditions, rising consumer demand for comprehensive protection products, and improving business sentiment providing tailwinds for both banking and insurance segments.