The life insurance market in Singapore posted a 10.9% rise in total weighted new business premiums in the first quarter of 2025 (Q1 2025), reaching S$1.48 billion, according to figures released by the Life Insurance Association, Singapore (LIA Singapore).
This uptick was driven largely by increased purchases of annual premium policies, which saw a 36.7% year-on-year rise to S$1.14 billion.
In contrast, single premium policy sales declined 32.2% to S$339.5 million from the same quarter in 2024, although they showed modest gains from the previous quarter.
Investment-linked policies (ILPs) emerged as a major contributor to growth, surging 60.6% year-on-year to S$665 million. ILPs, which combine life insurance protection with investment exposure, are being increasingly adopted by consumers looking to manage both coverage needs and long-term financial planning amid ongoing economic uncertainty.
Group life and health insurance also continued to expand, with total in-force premiums rising by 16% to S$2.68 billion. Of that total, accident and health policies made up nearly 74%, while life policies comprised the remainder.
LIA Singapore president Wong Sze Keed noted that the industry remains vigilant amid softer economic conditions.
“As we navigate a more cautious and uncertain macroeconomic landscape, as evidenced by Singapore’s downgraded GDP growth forecast to 0% to 2% for 2025, there are clear challenges ahead. Singapore’s life insurance industry remains resilient and agile, ready to adapt to shifting dynamics to best meet consumers’ evolving needs as we partner with them this year and beyond,” she said.
By distribution channel, financial adviser (FA) representatives accounted for S$14.6 billion in sum assured during Q1, representing 43.3% of the total. Tied representatives followed at S$10.9 billion, or 32.4%. The total sum assured across the industry came in at S$33.6 billion for the quarter, reflecting a marginal decline from Q1 2024.
In terms of product types, ILPs comprised the largest segment at 45% of new business premiums. Non-participating and participating products made up 33% and 22%, respectively. Bank-affiliated representatives contributed the highest share of new business by premium volume at 33.2%, followed by FAs (32.8%) and tied agents (30.8%).
The share of online and non-intermediated channels remained small, together accounting for just over 3% of new business.
Health insurance premiums for individuals rose significantly in the quarter, totalling S$201.3 million – more than doubling from the same period a year earlier.
Integrated Shield Plans (IPs), which enhance the basic MediShield Life coverage, accounted for 90% of the total. As of March 2025, IPs covered approximately 2.98 million Singapore residents, a slight increase from the year prior.
Total claims paid by the life insurance sector during the quarter reached S$2.77 billion, a decline of 44.7% from Q1 2024. Of this, S$2.21 billion was related to policy maturities, while S$559 million went toward death, disability, and critical illness benefits.
Normal license holders continued to dominate the market, contributing 99% of new business in Q1 2025. Defined Market Segment (DMS) insurers made up the remaining 1%.
Employment in the sector declined slightly, with the number of employees falling 1.4% year-on-year to 9,606. Meanwhile, 12,385 tied representatives held exclusive contracts as of March 31.
Looking ahead, Wong emphasised the industry’s focus on financial education.
“The life insurance industry remains committed to supporting consumers – not just by offering a wide range of products and services but also by championing financial education and promoting financial literacy. We want individuals and families to feel confident in making well-informed financial decisions and secure their long-term wellbeing. As we commemorate Singapore’s 60th birthday this year, let’s continue to remain resilient to progress together,” she said.
The latest figures and the association’s plans align with GlobalData’s forecast that Singapore’s life insurance market could grow to US$59.5 billion in gross written premiums by 2029, supported by demographic trends, rising health awareness, and a rebound in consumer spending.
