Singapore life insurers log $5.16b as LIA flags 2026 caution

Industry expands 11.3% in 2025 whilst leadership signals unpredictability ahead.

Singapore’s life insurance industry recorded total weighted new business premiums of $5.16b (S$6.53b) in 2025, up 11.3% year-on-year (YoY), according to the Life Insurance Association, Singapore (LIA Singapore).

Growth was mainly driven by higher sales of annual premium policies. In the fourth quarter alone, total weighted new business premiums rose 13.0% compared to the same period a year earlier.

However, the country is taking a careful approach this year, Wong Sze Keed, President of the LIA Singapore, said.

"Singapore is taking a cautious outlook in 2026 amid continued unpredictability globally. As the life insurance industry continues to be agile and front-footed in adapting to the changing environment, we remain committed to the community,” Wong said in a media release.

Annual premium products continued to support overall performance. Total weighted new business premiums for annual premium policies increased 5.5% YoY in the fourth quarter.

For the full year to end-December 2025, annual premium policies rose by $529.2m (S$669.9m) to $3.86b (S$4.88b), representing a 15.9% increase from 2024.

Single premium policies recorded a 42.0% increase in weighted premiums in the fourth quarter compared to the same period last year.

For the full year, total weighted premiums for single premium products reached $1.30b (S$1.65b).

Sales of single premium policies were weaker in the first half of the year amid cautious sentiment but improved in the second half, with the fourth-quarter increase linked to year-end liquidity and financial planning activity.

The industry also reported a 3.1% YoY increase in total sum assured as at year-to-date fourth quarter 2025.

Financial adviser representatives contributed 45.3% of this growth, whilst tied representatives accounted for 28.8%.

Individual health insurance premiums continued to rise. Total weighted new business premiums for individual health insurance reached $587.3m (S$743.4m) for the full year, up 19.0% YoY.

Of this, premiums from Integrated Shield Plans (IPs) and IP riders totalled $525.8m (S$665.6m), an increase of 19.6% compared to 2024. IPs and IP riders made up 90% of total individual health insurance premiums, with the remaining 10% from other medical plans and riders.

About 149,000 Singaporeans and permanent residents were covered by IPs at the end of 2025 compared to a year earlier.

In total, around 3.00 million lives, or about 71% of Singapore residents, are covered by IPs, which provide additional coverage on top of MediShield Life.

Claims payouts also increased during the year. The life insurance industry paid $11.24b (S$14.23b) to policyholders and beneficiaries in 2025.

Payouts for death, total and permanent disability, and critical illness claims rose 5.5% from the previous year, with $1.62b (S$2.05b) paid under these categories. A further $9.61b (S$12.17b) was paid out for maturing policies.

“Member companies continue introducing innovative ways and products to narrow protection gaps, and we are also collectively investing more in bolstering financial literacy and savviness. Together, we will build a more resilient Singapore to progress into the next sixty years and beyond,” Wong added.

($1.00 = S$1.26)