Analytics company GlobalData has forecast that the life insurance industry in Singapore will grow to S$100.4bn (£68bn, $77bn, €71bn) in terms of gross written premium (GWP) by 2027.
The research firm said that this will mean that the sector will grow at a compound annual growth rate of 9.8% from S$62.9bn.
According to GlobalData’s Insurance database, the Singapore life insurance industry grew 13.3% in 2022 and is projected to rise by 10.9% in 2023.
The growth will be driven by increased awareness of financial planning after the pandemic, which led to a rise in demand for protection products like term and whole life insurance.
Whole life insurance is the largest segment within the Singapore life insurance market, accounting for a 50.3% share of the GWP in 2022. Endowment insurance accounted for a 33.1% share of the overall life GWP in 2022. Personal Accident and Health (PA&H) accounted for an 8.6% share of the overall life GWP in 2022.
Term life as well as other life and annuity insurance accounted for the remaining 8% share of the life insurance GWP in 2022.
Shabbir Ansari, senior insurance analyst at GlobalData, said: “Singapore’s life insurance industry has shown resilience and recorded its fastest growth in recent years despite the pandemic.
“After witnessing high growth of 18.0% and 21.6% in 2020 and 2021 respectively, the industry growth is expected to slowdown from 2022 onward due to slowing economic growth, rising inflation, and global geopolitical uncertainties.
“The Singaporean life insurance industry is expected to witness strong growth over the next five years, supported by increasing awareness for financial protection, product innovations, and a growing affluent population in the country.”