Health insurance premiums surged 66.5% in the first half of 2026.
Singapore’s life insurance premium growth is expected to slow to as much as 9% in 2027 from 17% this year, as rising healthcare claims threaten profitability despite strong demand for retirement and investment products, according to S&P Global Ratings.
“Most Singapore life insurers continue to manage a large, asset-heavy in-force portfolio of traditional insurance products,” the rating company said in an October report. “Therefore, a significant capital challenge remains.”
S&P expects growth to slow in 2027 because of the high base in 2026 and a return to economic growth rates. Still, it expects insurers to maintain strong capitalisation and healthy profitability.
Total weighted first-year business premiums rose 21.4% year on year to $2.8b (S$3.6b) in the first half, according to the Life Insurance Association of Singapore.
Integrated Shield Plan and rider premiums rose 66.5% to $78.4m (S$100.3m), whilst investment-linked products accounted for 44% of weighted first-year business premiums, or $1.24b (S$1.59b).
S&P expects demand for retirement income solutions and long-term care coverage to increase as Singapore’s population ages.
The city-state’s total insurance premiums reached $44.6b (EUR39.7b) in 2025, according to Allianz Research. Life insurance accounted for $37.6b, followed by property and casualty insurance at $4.2b and health insurance at $2.8b.
Premiums represented 7.6% of gross domestic product, whilst average spending reached $7,593 per person, Allianz said in a May report.
“We expect an increase in private healthcare claims to continue to compress the margins of health insurance lines,” S&P said.
Life insurers could seek higher returns by increasing equity allocations or investing in private credit, real estate, and infrastructure, the debt watcher said. Such investments, however, could expose portfolios to greater market and liquidity risks.
Interest rate movements and market volatility pose additional challenges as investment-linked products account for a growing share of insurers’ business.
Questions to ponder:
- How can Singapore’s life insurers sustain growth as premium increases moderate in 2027?
- How can insurers contain rising healthcare claims without making coverage less affordable?
- How can they improve investment returns without taking on excessive market and liquidity risks?
($1=S$1.28=EUR0.89 as of 16 October)