Singapore Finance & Insurance Sector Expanded 4.3% in 2025, Moderating from 7.3%
Banking and life insurance drove growth; fund management lagged as insurtech market projected to reach $252m by 2031.
By Marcus Tan·March 18, 2026·6 min readOrionmano Industries
Banking and life insurance drove growth; fund management lagged as insurtech market projected to reach $252m by 2031.
Sector Growth Moderates in 2025
Singapore’s finance and insurance sector expanded by 4.3% in 2025, easing from the 7.3% growth recorded in 2024, according to the Monetary Authority of Singapore’s Financial Services Market View published by FPA Financial in February 2026. Growth was led by the banking and insurance segments, even as the fund management segment delivered more subdued performance amid global market turbulence.
Banks benefited from sustained credit intermediation activity amid accommodative financial conditions, while the insurance segment was supported by strong performance in life insurance. The fund management segment was weighed down by the pullback in global equity markets in November 2025, which dampened asset valuations and new inflows.
The moderation from the previous year’s pace reflects a normalisation following a period of elevated post-pandemic activity, though the sector remained a key contributor to Singapore’s overall economic growth in 2025. The finance and insurance sector’s 4.3% expansion outpaced the broader economy, underscoring its structural importance to Singapore’s GDP composition.
The life insurance industry posted a record S$2.99 billion in weighted new business premiums for the first half of 2025, a 7.7% increase year-on-year compared to the same period in 2024, according to the Life Insurance Association Singapore’s (LIA) 1H2025 media release dated 13 August 2025. This marked the highest first-half total since the pandemic period, reflecting sustained consumer demand for long-term protection and wealth accumulation products.
Annual premium policies surged 22.0% year-on-year, indicating strong take-up of regular premium products that provide recurring revenue streams for insurers. In contrast, single premium policies declined 21.3% over the same period, suggesting a shift in consumer preference toward staggered premium commitments amid a lower interest rate environment.
Investment-linked policies (ILPs) were the primary growth driver, with weighted new business premiums rising 31.3% year-on-year from S$975 million in 1H 2024 to S$1.28 billion in 1H 2025. ILPs accounted for 43% of total new business in the first half of 2025, building on momentum from Q1. The LIA noted that this trend reflects consumers seeking a balance between protection and exposure to equity and bond markets, even as global volatility persists.
In-force premiums for Group Life & Health continued to show steady growth, rising 15% from Q2 2024 to Q2 2025, recording a total of S$2.76 billion. Accident and Health accounted for 74.1% of these premiums, with Life representing 25.9%, underscoring the dominance of health-related coverage in the group segment.
General Insurance Rides Premium Growth
The domestic general insurance segment posted robust performance in 2025, with gross written premiums rising 8.4% year-on-year to S$6.1 billion, according to data from the General Insurance Association of Singapore reported by Insurance Asia. Combined domestic and offshore gross written premiums increased 3.7% to S$11.2 billion, reflecting sustained demand across both markets.
The property segment led growth, consistent with the broader trend observed since 2021 when property insurance showed double-digit increases. However, net incurred claims for the domestic segment also rose, climbing 8.7% year-on-year to S$1.8 billion, an increase of S$144.2 million compared to 2024. This claims growth underscores the sector’s role in providing financial protection during a period of rising costs and higher claims frequency across motor and property lines.
The GIA noted that the sector will host the International Union of Marine Insurance (IUMI) 2025 annual conference in September, reinforcing Singapore’s position as a key global maritime insurance hub and potentially supporting further growth in offshore marine underwriting.
Insurtech Market Gains as Digital Adoption Accelerates
The Singapore insurtech market was valued at USD 153.99 million in 2025 and is projected to reach USD 252.3 million by 2031, growing at a compound annual growth rate of 8.58%, according to Mordor Intelligence’s industry report. The market is estimated to reach USD 167.20 million in 2026 before accelerating toward the 2031 target.
Non-life insurance accounted for 63.50% of the market in 2025 and is the fastest-growing segment, forecast to expand at a 10.65% CAGR through 2031. This reflects the higher adoption of technology in property, motor, and health insurance lines, where telematics, computer vision-based claims assessments, and digital onboarding have become standard.
Embedded distribution is the fastest-growing channel, forecast at a 9.65% CAGR through 2031, as carriers scale in-app and checkout-based offers with AI-driven personalisation. Singapore’s connectivity provides a strong foundation for digital insurance distribution: mobile connections reached 162.6% of the population and wireless broadband subscriptions stood at 182.2% as of January 2025, according to IMDA data cited in the report. Full standalone 5G coverage, achieved nationwide by 2025, enables telematics and secure mobile submissions that reduce claims cycle times.
Outlook: Accommodative Conditions to Support Sector
The Monetary Authority of Singapore expects the finance and insurance sector to remain supported by broadly accommodative macroeconomic and financial conditions in 2026, according to the FPA Financial Services Market View. A low-interest-rate environment is anticipated to continue benefiting credit intermediation activity, providing a tailwind for banking segment performance.
The Singapore Business Federation’s National Business Survey Q4 2025 showed overall business sentiment improving, with the Business Sentiment Index rising 1.2 points to 53.4 in Q4 2025, ending a six-month decline. Insurance and banking were among the sectors showing the strongest improvement on growth confidence measures, which rose 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, even as overall sentiment towards government policies eased slightly to 55.7.
Fund management may continue to face headwinds from global market volatility, though the accommodative monetary environment could support asset valuations over the medium term. The insurtech market’s rapid evolution will reshape competitive dynamics, as digital-first incumbents and new entrants compete for market share across embedded and direct-to-consumer channels.
The combination of record life insurance new business, sustained general insurance premium growth, and insurtech adoption positions Singapore’s finance and insurance sector for continued resilience, even as the pace of overall expansion moderates from the elevated levels of 2024.
