Singapore businesses boost insurance spending as risks rise

38% of Singapore firms plan to reassess security of their overseas operations.

Insurance is becoming a key tool for Singapore businesses managing growing geopolitical and economic uncertainty, according to Beazley’s 2025 Geopolitical and Economic Risk & Resilience Report.

The survey of 3,500 senior business leaders found that firms are increasingly turning to insurance solutions that go beyond traditional protection. 

About 32% of Singapore-based companies plan to explore policies that include risk and crisis management this year, up from 20% in 2024. 

Beazley said businesses are using insurance to support expansion into new markets, secure energy and mineral resources, and mitigate risks from cyber threats and political disruption.

Some 74% of Singapore executives cited geopolitical and economic uncertainty as a barrier to growth, rising to 75% by mid-2025. 

Inflation concerns have also grown, with 30% identifying it as a major risk this year, compared with 25% in 2024. 

Meanwhile, 26% said economic uncertainty was their biggest threat, up from 20% a year ago.

To strengthen resilience, 38% of Singapore firms plan to reassess the security of their overseas operations, compared with 25% in 2024. 

Also, nine in 10 businesses intend to alter suppliers or reroute operations due to geopolitical tensions, up from 84% in January.

Despite the challenges, many companies continue to invest in high-risk, high-reward areas such as artificial intelligence, fusion energy, and lunar exploration. 

To support these ventures, 37% of firms are boosting spending on risk management and loss prevention, up from 21% in early 2024.

“Innovative insurance solutions, including political risk coverage, parametric supply chain protection and crisis management services, are helping businesses act confidently in uncertain conditions,” Bethany Greenwood, CEO of Beazley Furlonge Limited and Group Head of Specialty Risks Beazley, said.