Singapore general insurers recorded combined ratios averaging 95–100% in 2025, reflecting competitive pricing pressure in motor and health segments.

Market Overview

Singapore’s domestic general insurance sector reached a record S$6.09 billion in gross written premiums (GWP) in 2025, an 8.4% year-on-year increase, according to data from the General Insurance Association of Singapore (GIA). Combined GWP for domestic and offshore segments rose 3.7% to US$8.74 billion (S$11.2 billion). The market is projected to grow at a compound annual growth rate (CAGR) of 6.3% through 2030, from an estimated S$6.7 billion in 2026 to S$8.6 billion, per GlobalData forecasts.

Despite the top-line growth, net incurred claims for the domestic segment rose 8.7% year-on-year to S$1.8 billion, an increase of S$144.2 million compared to 2024. The industry's combined ratio—a key measure of underwriting profitability—remained in the 95–100% range for 2025, indicating that premium income was barely sufficient to cover claims and expenses. A combined ratio below 100% signifies underwriting profit; above 100% indicates loss. The range suggests that margins are thin across the sector, with some segments under particular strain.

GWP (S$B) (S$B)Source: Orionmano Industries

Motor Insurance

Motor insurance remained the largest domestic segment in 2025, with GWP rising 5.2% to S$1.28 billion. Growth was supported by a 30% increase in new vehicle registrations from January to October 2024 compared to the prior-year period, as well as rising adoption of electric and autonomous vehicles. The segment is forecast to grow at a 3.6% CAGR from 2025 to 2029, according to GlobalData.

However, underwriting profitability remains elusive. Despite a "slight improvement" noted by GIA, the motor segment recorded an underwriting loss of S$6.9 million in 2025. Claims rose 11% year-on-year even as accident rates were described as "stable." The elevated claims environment reflects rising repair costs, higher parts prices, and the increasing complexity of modern vehicles—including EVs. Competitive pricing pressure has kept premium increases below the rate of claims inflation, a dynamic that explains the segment's persistent underwriting losses.

Health Insurance

Health insurance premiums rose 7.4% to S$1.24 billion in 2025, making it the second-largest segment by premium volume. Personal accident and health (PA&H) insurance is expected to account for 24.7% of total general insurance GWP in 2025, per GlobalData, with a robust CAGR of 15.7% from 2021 to 2025. Growth is driven by rising healthcare spending, an aging population, and high penetration of Integrated Shield Plans—around 72% of the Singapore population held such plans as of H1 2025, according to the Life Insurance Association of Singapore.

Health insurance claims rose 6.4% to S$409.4 million in 2025. GIA attributed this to "the broader trend of increasing healthcare needs, as well as higher treatment costs driven by medical inflation." The segment remains profitable but faces margin compression as medical inflation outpaces premium growth, a structural challenge common to mature health insurance markets.

Property Insurance

Property insurance premiums grew 4.1% to S$864.1 million in 2025, representing the third-largest line. The segment is estimated to account for 19.1% of general insurance GWP in 2025, with growth of 7.5% projected for the year, supported by public infrastructure investment and housing market growth. Key projects include the expansion of the rail network by 360 kilometers by 2030 and road projects such as the Changi Northern Corridor and North-South Corridor.

Property insurance claims jumped 60.5% in 2025. GIA attributed this partly to an increase in fire incidents—the Singapore Civil Defence Force reported 2,050 fire incidents in 2025, a 3% year-on-year increase—alongside several large-scale property losses. Despite the claims spike, the segment remains profitable overall, though the sharp increase in loss ratios bears watching.

Industry Profitability

Despite the elevated claims environment, the domestic segment recorded an improved underwriting performance overall. Underwriting profit rose 32% to S$289 million in 2025, up from S$219 million in 2024. GIA described this as reflecting the "resilience of Singapore's general insurance market."

Singapore Re, the national reinsurer, reported a combined ratio of 72.2% for 2025, an improvement of 5.9 percentage points from 78.1% in 2024, though net income declined 14.2% to S$60.3 million. The disparity between Singapore Re's strong combined ratio and the industry's 95–100% range reflects the different risk profiles and expense structures of direct insurers versus reinsurers.

Outlook

The Singapore general insurance market is estimated to grow 6.7% in 2025, driven by economic expansion, rising demand for health insurance, auto premium adjustments, and resilient property values, according to GlobalData. Growth is expected to continue at a 6.3% CAGR through 2030.

Motor and health segments will remain the most competitive, with combined ratios likely to stay in the 95–100% range absent significant premium rate increases or moderation in claims inflation. Property insurance faces uncertainty from the potential for more frequent large-loss events. Insurers are expanding digital capabilities and introducing new products, which could help improve expense ratios over time. Regulatory developments—including potential changes to motor insurance frameworks and health insurance pricing—will also shape the trajectory.