Life insurance new business premiums surged 19.7% to SGD 5.87 billion, driven by investment-linked plans and annual premium products.

Total Assets Reach SGD 456.4 Billion

Singapore's insurance industry total assets increased by 3.6% in 2024 to SGD 456.4 billion, according to the Life Insurance Association, Singapore (LIA Singapore). The growth was underpinned by a strong recovery in the life insurance sector, which recorded a 19.7% year-on-year increase in total weighted new business premiums to SGD 5.87 billion. The industry's rebound in 2024 has established a base for sustained expansion despite ongoing macroeconomic headwinds, LIA Singapore President Dennis Tan noted.

Life Insurance Premium Surge: Product Mix Shift

Total weighted new business premiums for life insurance reached SGD 5.87 billion in 2024, up 19.7% year-on-year. Investment-linked plan (ILP) premiums surged 41% year-on-year to SGD 2.25 billion, as consumers increasingly turned to these policies for wealth accumulation amid economic uncertainty and rising interest rates. Regular premium ILPs gained particular traction due to their ability to mitigate market timing risks through dollar-cost averaging. Non-participating product premiums grew 19.2% year-on-year to SGD 2.19 billion. Participating product premiums declined 2.7% year-on-year, contributing an estimated SGD 1.43 billion.

In the fourth quarter of 2024, annual premium products increased 27.9% year-on-year, while single premium products declined 26.3% year-on-year.

Premiums (SGD billions) (SGD billions)Source: Orionmano Industries

Health Insurance Expansion and Protection Gap Reduction

Health insurance coverage widened materially during 2024. Integrated Shield Plan (IP) coverage increased by 40,000 lives over the year, bringing the total to 2.97 million Singapore residents—71% of the resident population now protected by IPs, which provide additional coverage beyond MediShield Life. The total sum assured across the industry increased by 3.6% year-on-year, narrowing Singapore's protection gap. Financial Adviser Representatives contributed 40.7% of this growth, while Tied Representatives accounted for 33.3%, underscoring the importance of the advisory channel in expanding coverage.

Outlook: Sustained Growth Amid Headwinds

LIA Singapore President Dennis Tan cited interest rate volatility and geopolitical uncertainties as ongoing challenges for the sector. However, the industry's momentum is expected to persist, driven primarily by annual premium products, which recorded a 27.9% year-on-year increase in Q4 2024. Singapore's gross written premium is projected to grow to approximately SGD 80 billion by 2028, up from SGD 62 billion in 2023, according to industry forecasts. This represents a steady annual growth rate of approximately 4%.

Demographic and structural factors underpin this trajectory. By 2030, one in four Singapore residents will be at least 65 years old, intensifying demand for annuities, critical-illness coverage, and long-term-care products. The rapid rise in family offices—from 400 in 2020 to 1,650 by 2024—amplifies demand for capital-efficient single-premium solutions suitable for wealth transfer. Investment-linked and whole-life products are expected to remain key engines of growth as households seek both market participation and guaranteed cash values. The industry's recovery in 2024 has thus laid the groundwork for continued expansion, even as insurers navigate a complex macroeconomic environment.