What will drive Singapore’s general insurance market to bag $6.5 by 2030?

PA&H market alone is projected to make up a fourth of the sector’s total premiums.

Singapore’s general insurance market is forecasted to reach a compound annual growth rate (CAGR) of 6.7% this year, according to GlobalData.

This will likely be driven by “economic expansion, rising demand for health insurance products, rising auto insurance premiums, and resilient property values.”

The report also projects the sector will register a 6.3% CAGR from 2026 to 2030, pencilling $6.5b (S$8.6b) in gross written premiums (GWP).

Personal accident and health (PA&H), motor, property, and liability insurance markets are expected to make up 81.3% of the sector’s GWP this year.

“Motor insurance premiums are expected to rise due to elevated claims costs,” Swarup Kumar Sahoo, Senior Insurance analyst at GlobalData, said in the report.

“Whilst medical inflation, an aging population, and the launch of new products such as embedded health insurance plans and youth-focused accident cover will boost PA&H demand, resilient property prices and ongoing infrastructure investment will keep the growth of property insurance upward during 2026 to 2030,”

The PA&H market alone is projected to make up a fourth of the general insurance sector’s total GWP this year, and the largest line compared to others.

This line recorded a CAGR of 15.7% between 2021 and 2025, driven by rising healthcare spending and an ageing population. 

The Life Insurance Association of Singapore reports that about 72% of the population had Integrated Shield Plans as of the first half of 2025.

Medical inflation reached 10.1% in 2024, according to the Department of Statistics Singapore, due to new medical technologies, minimal cost-sharing, and advances in pharmaceuticals. 

Healthcare spending continues to increase, prompting insurers to enhance group health coverage with more inclusive benefits, the report said.

The ageing population is another key driver. Data from the National Population and Talent Division show that 20.7% of Singapore’s population will be aged 65 or above by the end of 2025, up from 13.1% in 2005. 

This demographic shift is expected to sustain PA&H premium growth at a CAGR of 7.7% between 2026 and 2030.

Motor insurance is the second-largest business line, representing 20.6% of general insurance premiums in 2025. 

Premiums are projected to grow by 6.7% in 2025 and 6.2% in 2026, supported by higher rates and strong vehicle sales. 

Between January and September 2025, vehicle sales rose 25% year-on-year, driven by strong demand for battery electric vehicles under the government’s Electric Vehicle Early Adoption Incentive scheme.

Property insurance ranks third with a 19.1% share of the market in 2025. It is expected to grow by 7.5% in 2025 and 6.3% in 2026, supported by ongoing infrastructure and housing developments. 

Major public projects include the 360-kilometre rail network expansion by 2030 and road projects such as the Changi Northern Corridor, North-South Corridor, and Tampines Walking and Cycling Town.

Other general insurance lines, including liability, financial, marine, aviation, and transit (MAT), are expected to contribute 34.8% of total GWP in 2025.

Sahoo also said that embedded and behaviour-linked health insurance products are gaining traction, helping insurers improve risk selection and manage claims costs through healthier customer behaviour.