What's Happening?
Singapore's life insurance industry has reported a 7.7% increase in weighted new business premiums for the first half of 2025, reaching US$2.33 billion. This growth is primarily driven by investment-linked policies, which saw a 31.3% rise year-on-year. Annual premium policies also contributed significantly, increasing by 22%. Despite the growth in premiums, the number of policies sold declined by 18.6%, indicating a trend towards fewer but more comprehensive policies. The Life Insurance Association, Singapore attributes this to a focus on long-term financial planning amid economic growth.
Why It's Important?
The increase in new business premiums highlights a strong demand for life insurance products in Singapore, reflecting consumer confidence in financial planning and investment. This trend may influence the insurance industry's strategies, encouraging a focus on investment-linked products and comprehensive coverage options. The growth in premiums also suggests a positive economic outlook, potentially attracting more investment into Singapore's financial sector.
