How did Singapore’s life insurers fare in 2024?

The industry’s was influenced by higher demand for annual premium products.

Singapore’s life insurance industry recorded a 19.7% year-on-year (YoY) growth in 2024, with total weighted new business premiums reaching $4.34b (S$5.87b) for the year, according to the Life Insurance Association, Singapore (LIA Singapore). 

The increase was primarily driven by higher demand for annual premium products.  

Investment-linked plans (ILPs) saw a 41% YoY surge, rising from $1.19b (S$1.6b) to $1.67b (S$2.25b), as more consumers turned to these policies for wealth accumulation amidst economic uncertainty and rising interest rates. 

Regular premium ILPs gained traction due to their ability to mitigate market timing risks through dollar-cost averaging. 

Non-participating products also grew by 19.2% YoY to $1.62b (S$2.19b), whilst participating products declined slightly by 2.7% YoY.  

The industry continued efforts to reduce Singapore’s protection gap, with the total sum assured increasing by 3.6% YoY 
Financial Adviser Representatives contributed 40.7% of this growth, whilst Tied Representatives accounted for 33.3%. 

Health insurance coverage also expanded, with 40,000 more Singaporeans and Permanent Residents covered by Integrated Shield Plans (IPs) by the end of 2024. 

In total, 2.97 million lives, or 71% of Singapore residents, are now protected by IPs, which provide additional coverage beyond MediShield Life.  

LIA Singapore President Dennis Tan said the industry's recovery in 2024 has laid the foundation for continued growth despite challenges such as interest rate volatility and geopolitical uncertainties. 

He emphasised the sector's commitment to evolving its products and strengthening financial planning to enhance protection for Singapore residents.  

Annual premium products were the key driver of growth in the fourth quarter, with total weighted new business premiums increasing by 11.1% YoY. 

Annual premium products alone saw a 27.9% YoY increase in Q4 2024, contributing $90.21m (S$121.9m) more in premiums—a 10.9% YoY rise.  

In contrast, single premium products declined by 26.3% YoY in Q4 2024, marking the only quarter of decline for the year. 

This brought the total weighted premiums of single premium products to $1.22b (S$1.65b) for the full year.

($1.00 = S$1.35)