Insurers expand beyond protection into wealth planning

Only 41% of consumers own life insurance.

Singapore insurers are broadening their focus beyond traditional protection products as customers increasingly seek help with wealth accumulation, retirement income, and legacy planning.

“Customers today are less likely to view these needs in isolation,” Michelle Fang, chief marketing officer at Manulife (Singapore) Pte. Ltd., told Singapore Business Review.

“They expect their insurer to help them connect different parts of their financial lives, from protection and health needs to retirement planning, wealth accumulation, and legacy considerations,” she added.

The shift comes even as protection gaps remain. Data from the Manulife Asia Care Survey 2025 showed that whilst 72% of respondents think financial well-being affects physical health and 70% said insurance provides peace of mind in retirement, only 35% reported holding critical illness insurance and 41% had life insurance coverage.

Fang said rising living costs and competing financial priorities are making consumers more selective about how they spend, forcing insurers to demonstrate value beyond traditional coverage.

“Rising living costs and competing financial priorities are making consumers more deliberate about how they allocate their money,” she said.

The changing expectations are reshaping product development across the industry. Manulife said it is seeing growing demand for solutions that combine wealth accumulation, retirement income, and legacy planning.

A similar trend is emerging at Singapore Life Ltd. (Singlife), where customer demand is increasingly extending beyond protection.

“As Singapore enters a super-aged phase, we are seeing the strongest demand in two areas: long-term care protection and retirement income with legacy planning,” Helen Shen, group head of products at Singlife, said in an emailed reply to questions.

She said life insurance demand is evolving towards products that combine income generation with wealth transfer.

The shift is also evident at Etiqa Insurance Pte. Ltd. Based on its 2025 wealth transfer survey, 49% of Singaporeans use insurance to transfer wealth to future generations.

“Closer to retirement, financial priorities may shift towards long-term healthcare needs, wealth preservation, and legacy planning for the next generation,” Claudia Soh, acting CEO and chief financial officer at Etiqa, said in an emailed response.

Despite the industry’s move towards wealth and retirement solutions, insurers said protection needs remain underpenetrated.

Fang noted that customer engagement is still often triggered by specific events such as claims, policy reviews, or milestones rather than assessments of changing financial needs.

To deepen engagement, insurers are expanding into adjacent services. Singlife connects customers with healthcare and recovery support providers, whilst Manulife offers access to multi-cancer detection screening through a partnership with Guardant Health.

Etiqa is also seeing growth in emerging segments outside traditional life insurance, reporting about 20% year-on-year growth in pet insurance.