Singapore: Life Insurance Weighted New Business Premiums Hit S$3 Billion in 1H 2025, Highest Since Pandemic

Singapore’s  life insurance industry recorded a strong first half in 2025, with weighted new business premiums rising 7.7% year on year to S$2.99 billion, the highest level since the Covid-19 pandemic, according to the Life Insurance Association (LIA) Singapore.

Annual Premiums and ILPs Drive Year-On-Year Growth in 1H 2025

• Annual premium policies surged 22% to S$2.26 billion.
• Single premium policies fell 21.3% to S$722.9 million.
• Investment-linked policies (ILPs) grew 31.3% to S$1.28 billion, accounting for 43% of total new business.

LIA president Wong Sze Keed said the growth shows Singaporeans’ focus on long-term financial planning and security. She added that demand for ILPs reflects a “prudent yet ambitious mindset – one focused on safeguarding against global unpredictability while capturing growth opportunities in an evolving financial landscape.”

Fewer Policies, Higher Coverage

Despite the rise in total premiums, the number of policies fell 18.6% to 579,343.

• Sum assured rose 1.7% to S$71.4 billion.
• This suggests consumers are opting for fewer but more comprehensive policies, offering higher coverage or investment potential per plan.

Surge in Health Insurance

Health insurance sales jumped in 1H 2025:

• Individual health insurance premiums grew 69.3% year on year to S$373.7 million.
• Integrated Shield Plans (IPs) and riders accounted for nearly 90% of this amount.
• About 69,000 Singapore residents took up new IPs, bringing total coverage to 2.99 million lives, or around 72% of the population.

Claims Payouts Decline

The industry paid out S$6.35 billion to policyholders and beneficiaries between January and June 2025 — a 42% drop compared with the same period last year.

• S$5.32 billion went to matured policies.
• S$1.03 billion was paid for death, critical illness, or disability claims covering more than 10,900 policies.

Distribution Channels

By weighted premiums, new business was distributed through:

• Bank representatives – 35.5%
• FA representatives – 33.3%
• Tied representatives – 27.8%
• Others (without intermediaries) – 2.0%
• Online direct channel – 1.4%

By Number of Policies, new business was distributed through:

• FA representatives – 38.2%
• Tied representatives – 37.0%
• Bank representatives – 11.0%
• Online direct channel – 11.5%
• Others (without intermediaries) – 2.3%

Outlook

The industry remains upbeat as Singapore’s economy grew 4.3% in Q2 2025, outpacing Q1’s 4.1%. LIA said the resilient economy provides an encouraging backdrop for consumers to review financial plans and address long-term protection needs.