Singapore Life Insurance Premiums Grow 10.9% in First Quarter of 2025
Annual premium policies and investment-linked plans drive strong industry growth despite economic challenges.
Singapore’s life insurance industry posted $1.14 billion (S$1.48 billion) in new business premiums for the first quarter of 2025. This marks a 10.9% increase compared to the same period last year, according to the Life Insurance Association, Singapore (LIA Singapore).
The rise was mainly due to a 36.7% jump in annual premium policies, which accounted for $0.88 billion (S$1.14 billion) of the total premiums.
Single premium policies fell 32.2% year-on-year to $0.26 billion (S$339.5 million). However, this was still a 5.2% increase from the previous quarter.
Investment-linked policies (ILPs) saw a sharp 60.6% rise, growing from $0.32 billion (S$414 million) in Q1 2024 to $0.51 billion (S$665 million) in Q1 2025. The growth in ILPs and annual premium plans shows that consumers prefer policies that combine protection with investment benefits.
Group Life and Health insurance premiums also increased by 16% year-on-year, reaching $2.06 billion (S$2.68 billion). Accident and health policies made up 73.8% of this total, with life insurance covering the remaining 26.2%.
Sales remain focused on financial adviser (FA) representatives and tied agents. FA representatives secured $11.24 billion (S$14.6 billion) in sum assured, making up 43.3% of the total for the quarter. Tied agents accounted for $8.39 billion (S$10.9 billion), or 32.4%.
The total sum assured for Q1 2025 was $25.87 billion (S$33.6 billion), showing a slight decrease from Q1 2024.
LIA Singapore President Wong Sze Keed noted the positive performance despite economic uncertainty. He mentioned Singapore’s downgraded GDP growth forecast of 0% to 2% for 2025 as a key challenge for the industry.
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