Wealth and retirement products drove life insurance growth amid broader industry expansion.

The Monetary Authority of Singapore reported that total insurance industry assets reached S$456.4 billion in 2024, a 3.6% increase over 2023, with life insurance leading growth through wealth and retirement products. Managing Director Chia Der Jiun confirmed the headline figure during MAS's annual report media conference for the 2024-2025 financial year, noting the expansion across both life and general insurance segments.

Industry Asset Growth Driven by Life Insurance Surge

Total industry assets rose 3.6% to S$456.4 billion in 2024, according to MAS Managing Director Chia Der Jiun (Source 2). The growth was underpinned by a sharp acceleration in life insurance activity. Life insurance total weighted new business premiums reached S$5.87 billion in 2024, a 19.7% increase over 2023 (Source 6). Life insurance gross premiums grew 10.93% year-on-year, reversing a contraction in the prior year when elevated interest rates prompted consumers to favour fixed deposits over insurance products (Source 5).

The broader financial ecosystem showed supportive tailwinds. Singapore's assets under management (AUM) grew 12.2% year-on-year to exceed S$6 trillion in 2024, the first time the city-state's AUM has crossed that threshold, driven by both traditional and alternative asset classes including private equity, venture capital, and real estate (Source 2).

Wealth and Retirement Products Propel Life Premiums

Investment-linked plans were the main draw for customers in 2024, driving much of the industry's expansion, according to the Life Insurance Association of Singapore (Source 5). Insurers increasingly positioned themselves around wealth accumulation and retirement solutions rather than traditional protection-only offerings.

Manulife Singapore CEO Benoit Meslet said the insurer's standing was reinforced by enhancements to its whole-life solutions. "We also introduced new solutions for high-net-worth individuals seeking legacy planning and wealth accumulation, reinforcing our leadership in this segment," Meslet stated in a written response to Insurance Asia (Source 5). Singlife reported a 45% year-on-year increase in regular premium sales, outperforming the broader market's 26% increase. Singlife CEO Pearlyn Phau attributed the gains to more productive sales staff, better adviser targeting, and customers keeping their policies longer, adding that updated incentives and data-based tools helped shift the focus from volume to quality (Source 5).

Prudential Plc ranked second by gross premiums, with premiums surging 31% to $7.4 billion (S$9.6 billion), marking one of the strongest growth rates among major players. AIA Singapore, Manulife (Singapore), and Singapore Life Holdings (Singlife) all placed third (Source 5).

Claims Payouts Surge Reflecting Maturities and Health Claims

The life insurance industry paid out S$18.12 billion to policyholders and beneficiaries in 2024, up 33.4% from 2023 (Source 4, Source 5). This sharp increase reflects higher claims and maturing policies, according to data compiled by Insurance Asia (Source 5). The S$18.12 billion figure represents a significant acceleration in claim volumes, underscoring the maturation of policies sold in earlier years and the impact of health-related claims across the industry.

General Insurance Posts Modest Growth

The general insurance segment posted comparatively subdued results. General insurance gross premiums rose only 1.61% year-on-year in 2024 (Source 5). This modest growth follows a 9% contraction in 2023, when elevated interest rates favoured fixed deposits over insurance products (Source 5). The divergence between life and general insurance performance highlights the structural differences in demand drivers, with life insurers benefiting from wealth accumulation and retirement trends while general insurers continue to navigate a more competitive pricing environment.

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

Outlook: The industry's shift toward wealth accumulation and retirement solutions is expected to continue, supported by Singapore's growing AUM and high-net-worth demand. Singapore's AUM exceeding S$6 trillion for the first time provides a substantial addressable pool for insurers offering investment-linked and wealth management products. However, the 33.4% surge in claims payouts to S$18.12 billion may pressure margins over the medium term, particularly if claims frequency remains elevated or health-related costs continue to rise. Insurers will need to balance premium growth with underwriting discipline as the product mix shifts further toward savings and investment-oriented policies.