Singapore’s General Insurance Sector Achieves Average Annual Growth of 8% Over the Last Decade

General Insurance Sector Grows at 8% CAGR Over 10 Years

[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) said.

Data Highlights

Data 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.

Growth Drivers

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.

Domestic Segment

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.

Challenges

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.

Conclusion

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.

FAQs

Q: What is the average annual growth rate of the general insurance sector in Singapore over the last decade?
A: Around 8 per cent.

Q: What is the year-on-year increase in gross written premiums in 2024?
A: 6.3 per cent.

Q: What is the overall underwriting profit for the sector in 2024?
A: S$642.31 million.

Q: What is the trend in the growth of the offshore and domestic business segments?
A: The offshore business has grown more quickly than the domestic one, reflecting the increasing volume of foreign risks being insured by Singapore-based insurers.