Staff Reporter
Published:
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Demand for health protection, among others, is expected to sustain the sector’s expansion.
The life insurance industry is expected to record premium growth of 13%-17% in 2026 before moderating to 7%-9% in 2027, according to S&P Global Ratings.
Total weighted new business premiums rose 21.4% year on year to $3.6b in the first half of 2026, data from the Life Insurance Association of Singapore showed.
S&P attributed the industry’s outlook to three long-term drivers: an ageing population, increasing demand for comprehensive medical coverage and rising household wealth.
Citizens aged 65 and above accounted for 21.4% of Singapore citizens as of June, compared with 13.7% a decade earlier. The demographic shift is expected to support demand for retirement-income products and long-term care coverage.
Health insurance is also expected to remain one of the sector’s fastest-growing segments. Integrated Shield Plan and rider premiums increased 66.5% to $100.3m in the first half.
Consumers are seeking broader medical coverage, access to private healthcare and specialised protection such as multistage cancer plans.
Investment-linked products have meanwhile become a major source of premium growth as households combine insurance protection with market-linked returns.
The products accounted for 44% of weighted new business premiums in the first half, equivalent to $1.59b.
Singapore’s growing role as an international wealth-management centre is also creating opportunities for insurers serving high-net-worth and ultra-high-net-worth clients.
Assets under management reached $6.7t in 2025, whilst the number of single-family offices increased to more than 2,000 from around 400 in 2020.
S&P said insurers could benefit from demand for wealth preservation, intergenerational transfers, estate liquidity and key-person protection. Competition in the affluent segment is nevertheless expected to intensify.
The ratings agency expects strong capitalisation and healthy profitability to support stable sector performance.
However, insurers remain exposed to movements in interest rates and capital markets. Rising private-healthcare claims and medical inflation could also continue to pressure margins in health insurance.
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