Average growth of 8% a year in last decade by Singapore’s general insurance sector

[SINGAPORE] The Republic’s general insurance sector has grown at an average annual rate of around 8 per cent in the last decade, reflecting its consistent performance and resilience over the long term, the General Insurance Association of Singapore (GIA) has said.

Data it released on Monday (Mar 24) also showed that in 2024, the sector recorded a 6.3 per cent year-on-year increase in gross written premiums to reach S$10.8 billion. In that time, overall underwriting profit rose by 5.6 per cent to S$642.31 million.

Ho Kai Weng, chief executive at GIA, told The Business Times: “Over the last decade, both domestic and offshore businesses grew alongside Singapore’s and the regional economies.”

He added that notably, the offshore business has grown more quickly than the domestic one, in a trend that reflects the increasing volume of foreign risks being insured by Singapore-based insurers.

Meanwhile, the domestic segment was also on a growth trajectory, posting an 8.3 per cent increase in gross written premiums in 2024 – outpacing that in 2023.

However, rising claims dampened profitability. Most business segments recorded a rise in net incurred claims, with property, travel and health insurance experiencing double-digit increases.

This led to an overall 14.4 per cent rise in claims for the sector, in line with global trends driven by factors such as climate change, healthcare inflation and escalating repair or replacement costs.

As a result, underwriting profit for the domestic segment fell by 16.7 per cent to S$219.04 million.

A report by Deloitte on its 2025 global insurance outlook said that high inflation and increasingly erratic climate-related losses have put pressure on the profitability of non-life insurance in recent years – and many insurers have responded by raising premiums and scaling back coverage for high-risk policies.

Data from Swiss Re pointed to the same trend: global non-life premiums grew by 3.9 per cent in real terms in 2023, partly due to insurers adjusting rates to counter rising claims costs.

Positive momentum

Despite the ongoing challenges, GIA remains confident in the sector’s prospects over the next five years; the association highlighted the sector’s resilience and expects continued growth in the years ahead.

Ho said: “If you take a look at the statistics, the total value of the general insurance sector has been growing over the past 25 years – and this includes through economic downturns.”

He highlighted Singapore’s position as a strategic insurance hub, attracting risks for both expertise and capacity: “With this robust capacity, we are placing significantly fewer risks outside the Singapore market than 10 years ago,” he added.

One key area of growth is in health insurance, which has become the second-largest domestic business pillar. Ho attributed this expansion to factors such as an ageing population and increasing medical costs.

The sector posted an underwriting profit of S$5.34 million in 2024, reversing the loss recorded in 2023. This corresponds with a 15.9 per cent increase in gross written premiums, underscoring the growing importance of health insurance, and an increased awareness of financial protection as being part of holistic health management.

However, the group health and surgical sub-segment continues to face challenges, with rising claims costs contributing to ongoing losses.

In contrast, employers’ liability insurance logged a 4.9 per cent decline in net incurred claims for 2024, defying the broader upward trend across the sector’s top business classes. This improvement came on the back of a decline in major workplace injuries, as indicated in the Ministry of Manpower’s H1 2024 Workplace Safety and Health report, although workplace fatalities rose slightly from 2023.

In the travel insurance segment, gross written premiums rose by 5.1 per cent to S$310.1 million, reflecting heightened consumer awareness of travel risks amid geopolitical tensions and climate-related disruptions.

Beyond individual business segments, the general insurance sector’s consistent growth has underscored Singapore’s position as a key global insurance hub. GIA said this momentum sets the stage for the Republic to host the International Union of Marine Insurance 2025 annual conference in September.

Singapore ranks as the second-largest marine hull underwriter in Asia, and fourth globally. GIA noted that hosting the world’s largest marine insurance event would further bolster the Republic’s position as a leading maritime hub.