According to research by GlobalData published by the Singapore Business Review, the city-state's accident and health (PA&H) insurance market is set for significant expansion.
The data published projects that the portfolio should expect a compound annual growth rate (CAGR) of 6.6%, growing from $8.5bn in 2024 to $11.7bn by 2029.
This growth will contribute to the PA&H segment’s share of the total insurance market up from 15.3% in 2024 to 17.3% by 2029. This will be fuelled by the increasing demand for private health insurance and adjustments in premium pricing.
In 2024 Singapore’s PA&H insurance sector saw an impressive growth of 8.9%, with much better health and financial awareness playing a significant role in boosting demand.
GlobalData insurance analyst Aarti Sharma said the sector’s momentum is further supported by demographic shifts, including an ageing population, premium price hikes due to inflation and a resurgence in tourism.
Ms Sharma said that the increase in premiums, spurred by rising healthcare costs, is also expected to sustain the market’s upward trajectory.