Singapore's general insurance sector continued its upward trajectory in 2023, recording solid growth across both domestic and offshore segments, according to the General Insurance Association of Singapore (GIA).
Total gross written premiums rose by 6.3% y-o-y to reach S$10.8bn ($8.08bn), while overall underwriting profit climbed 5.6% to S$642.31m.
The domestic market saw gross written premiums grow by 8.3%, outpacing the previous year’s performance.
However, this growth was tempered by rising claims across most business lines.
Notably, property, travel, and health insurance segments experienced double-digit increases in net incurred claims, contributing to a 14.4% rise in overall claims—reflecting global trends driven by factors such as climate change, healthcare cost inflation, and increasing repair and replacement expenses. As a result, domestic underwriting profits fell 16.7% to S$219.04m.
Singapore’s health insurance segment returned to profitability in 2024, recording an underwriting profit of S$5.34m—a notable turnaround from its loss in 2023. The recovery aligns with a 15.9% increase in gross written premiums, underscoring the rising demand for health coverage as more individuals embrace insurance as part of their overall wellness strategy.
Despite this improvement, the Group Health and Surgical subsegment continues to face challenges, with escalating claims costs contributing to ongoing losses.
In the employer’s liability segment, net incurred claims fell by 4.9% in 2024, bucking the broader sector trend of rising claims.
The decline correlates with a reduction in serious workplace injuries, as reported in the first half of 2024, although fatalities rose slightly compared to the previous year.
Work-related traffic accidents remain a persistent issue, prompting insurers to explore safer transport options for workers.
Meanwhile, travel insurance premiums grew by 5.1% to S$310.1m, driven by heightened awareness of travel-related risks amid increasing geopolitical tensions and climate-related disruptions.
“The general insurance sector is operating in an increasingly complex and fast-evolving risk environment. From climate-related disasters to rising medical costs and economic volatility, insurers today must navigate a rapidly changing landscape. Now more than ever, insurance plays an irreplaceable role in safeguarding the public, helping them recover from financial losses, and ensuring access to protection. The Singapore general insurance sector remains committed to supporting Singapore through these uncertainties, as we continue to strengthen our role as a key insurance hub globally,” GIA president Ronak Shah said in an official statement.