Singapore is one of the leading financial hubs in Asia, and as a consequence, the insurance market also plays a significant role. The Singaporean government has a policy of increasing awareness and the value of insurance, improving consumer knowledge and insuring the uninsured. As a result, Singapore has high levels of insurance penetration.
The outlook for the life and non-life insurance market in the country is bright, with analysts predicting CAGR growth of 5% between 2020 and 2025. In the final quarter of 2019, the life assurance market recorded S$4.3 billion in weighted new business which was an increase of 0.4% from the previous year. The total sums assured also increased by 7% YoY, which amounts to approximately S$149.5 billion. All of this was despite the nation’s economy experiencing its slowest year for a decade.
In Singapore, like around the world, the most significant uptake for domestic insurance is vehicle insurance. Although five major players still dominate the insurance market in Singapore, small companies are entering the market and making an impact. Often some of these smaller companies charge significantly lower premiums, sometimes as much as 30-40%, for vehicle insurance. Inevitably, this is allowing them to gain a foothold in the market.