Singapore general insurance market to reach $8.1b by 2029: report

The industry is expected to grow by 8.0% in 2024.

Singapore's general insurance industry is projected to grow at a compound annual growth rate (CAGR) of 6.2% from $6.0b in 2024 to $8.1b in 2029, in terms of gross written premiums (GWP), GlobalData reported.

According to GlobalData, Singapore’s general insurance industry is expected to grow 8.0% due to economic recovery, escalating healthcare costs, and rising premium rates across general insurance lines.

PA&H insurance is forecast to grow by 9.0% in 2024, primarily due to escalating medical costs. It is the largest line of business in the Singaporean general insurance industry and is estimated to account for a 23.5% share of the general insurance GWP in 2024.

Motor insurance is the second-largest business line, which is anticipated to account for a 19.8% share of general insurance GWP in 2024. For 2024, it is expected to grow by 9.4% due to an increase in vehicle sales.

Property insurance is the third-largest business line, which is projected to account for an 18.1% share of general insurance GWP in 2024 and is forecast to grow by 5.4% in 2024, driven by an increase in construction activities.

Meanwhile, liability insurance is projected to account for a 17.6% share of the general insurance GWP in 2024. It is expected to grow at a CAGR of 6.0% during 2024-29.

In addition, Marine, Aviation, and Transit (MAT), financial lines, and other general insurance products are estimated to account for the remaining 20.9% share of the general insurance GWP in 2024.

“The general insurance industry in Singapore is well-positioned for sustained growth over the next five years. However, global economic volatility and geopolitical uncertainties might pose a challenge for insurers to maintain profitability,” Swarup Kumar Sahoo, senior insurance analyst at GlobalData said.