Explosion in Policies and Premium in Singaporean Life Market Latest Report

Abstract

In Axco’s latest report on the Singaporean Life and Benefit Market we explore the astounding growth in recent years, both in life policies which have jumped from nearly 10,000 in 2019 to nearly 600,000 policies in 2021. Although not as meteoric a rise, premium growth is still strong in the Singaporean Life sector with a growth rate of 24.41% recorded in 2021.

Axco Insurance Information Services (Axco) has released its latest non-life (P&C) insurance market report on Singapore. The report contains must-know regulatory information such as the country’s non-admitted position, crucial tax rates, analysis of the market trends and key lines of business. It also includes the latest market indicators and company statistics.

Market Overview

While Singapore is a relatively small city state with a population of 5.94 it million (2022), it is still the largest life insurance market in south-east Asia. There is high market penetration and Singapore ranked 15th for life in Axco’s global database (2020). The relatively large size of the Singaporean life market reflects the affluence and saving culture of Singaporean residents, in what is an advanced economy and a leading financial centre.

In terms of premium, the individual market dominates and far outstrips the well developed but significantly smaller group insured risk benefits market. In terms of the life market’s overall premium growth, it has been very positive in recent years. The life market (excluding PA & Healthcare) between 2017 and 2021 grew from 23,915.44 USD mn to 38,421 USD mn with a growth rate of 24.41 percent in 2021.

In June 2022 the regulator reported that there were seventeen registered life insurance companies, unchanged from the previous reporting in 2020. In addition to these companies, there were nine composite insurers, three life reinsurers and nine composite reinsurers.

Leading providers comprise two domestic insurers and a larger group of foreign-owned life insurance companies. The leading two domestic insurers are Great Eastern, majority-owned by the Singaporean Oversea-Chinese Banking Corporation Ltd (OCBC) banking group and NTUC Income, formed originally by the Singaporean trade union movement.

Market Developments

New business in the life market continued to recover from the slump it suffered during the pandemic slump. This can largely be attributed   to a robust single premium new business market and a recovery in annual premium and group risk new business.

Online distribution has created an explosion in the number of life insurance sales, from 9,971 policies in 2019 to 591,282 in 2021. Although the number of policies has risen dramatically, most of the online business are low value policies.             

In regulatory news, the Budget 2022 announced a 1% increase in Goods and Services Tax up to 8% effective from the 1st January 2023 with a further increase to 9% in 2024.  In the life market, GST applies to non-life group life policy rider premiums and premiums for accident, disability or medical risk policies issued by life companies.

----

Axco’s insurance market reports offer a uniquely detailed and comprehensive insight into the global non-life (P&C) insurance industry, combining the legislative and regulatory requirements, insurance market developments, and insurance market statistics of not only Singapore but also of over 170 territories worldwide.

About Axco Insurance Intelligence

Axco is the leading supplier of global insurance market information with over 55 years’ experience in researching and publishing industry intelligence on insurance and employee benefits. Its unique business model and methods of research have enabled the development of an extensive suite of products comprising in-depth reports, focused profiles, Q&A databases, intelligent questioning tools, and email services which are delivered to every corner of the globe.