Singapore’s life insurance sector experienced a 2.3% year-on-year (YoY) decline in workforce numbers in 2024, with the total headcount falling to 9,511 employees, according to data from the Life Insurance Association of Singapore (LIA). The report, which includes statistics up to December 31, also highlighted that 12,767 representatives held exclusive contracts with tied-agency companies.
Despite this reduction in manpower, the industry saw a significant surge in demand for Integrated Shield Plans (IPs) and riders, contributing to overall growth in individual health insurance. Total weighted new business premiums for individual health insurance reached S$624.8 million (US$462.35 million) in 2024, a 103% increase in the fourth quarter compared to the same period in 2023.
Of this, IPs and IP riders accounted for S$556.6 million (US$411.88 million), marking a 49.1% increase from the previous year. These products now represent 89% of total individual health insurance premiums.
Claims payouts also saw a sharp rise, with the industry disbursing S$18.12 billion (US$13.43 billion) in 2024, a 33.4% increase from 2023. The majority of these payouts—S$16.18 billion (US$11.97 billion)—were for policy maturities, while S$1.94 billion (US$1.44 billion) was allocated to death, total and permanent disability, and critical illness claims.
In terms of business mix, participating (Par) products contributed 24% of total weighted new business premiums, non-participating (Non-Par) products accounted for 37%, and investment-linked products made up 39%.
Insurers with “Normal” licenses were responsible for 99% of the total new business premiums, while “Defined Market Segments” insurers contributed the remaining 1%.
Looking ahead to 2025, Dennis Tan, President of LIA Singapore, expressed optimism for the year ahead. He highlighted growing consumer awareness, the demand for sustainable insurance products, and the ongoing digital transformation in the sector as key factors that will drive growth. However, he also voiced concerns about medical inflation, which is expected to rise by 12% in Singapore and reach double digits across the Asia-Pacific region.
Tan attributed this projected increase to an aging population, the rising costs of advanced medical treatments, potential overuse of healthcare services, and growing labor expenses. To address these challenges, the insurance industry is collaborating with the government and healthcare stakeholders to ensure the accessibility and sustainability of high-quality healthcare for Singaporeans.
Exchange Rate: $1.00 = S$1.34
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