The Life Insurance Association, Singapore (LIA Singapore) has announced the full year industry results for 2025, ending the year with a 11.3% growth over 2024, reaching a total of S$6.53bn ($5.17bn) in total weighted new business premiums.
The growth was primarily due to an increase in the annual premium business. The industry recorded a 13% growth in 4Q2025, as compared to 4Q2024.
Making strides despite challenges
Despite ongoing global challenges, Singapore’s life insurance industry continues to make strides in narrowing the nation’s protection gap, achieving a 3.1% y-o-y increase in total sum assured for year-to-date (YTD) 4Q2025.
Financial advisers (FAs) contributed 45.3% of this growth, while tied representatives accounted for 28.8%.
“In this evolving economic landscape, marked by volatilities and shifts in the job market, the fundamental role of life insurance as a resilient pillar of financial security is more critical than ever. It is heartening that Singaporeans recognise this,” said LIA Singapore President Wong Sze Keed.
“We are seeing more individuals and families getting essential protection coverage as well as continuing to invest purposefully for their long-term financial well-being for peace of mind as well as their future and that of their loved ones.”
Sustained demand
Total weighted new business premiums recorded a growth of 13% in 4Q2025, compared to 4Q2024.
Total weighted new business premiums for annual premium products also increased by 5.5% in 4Q2025, compared to the same period in 2024, reflecting sustained demand for products that offer greater flexibility, affordability, cashflow management and are designed for long-term protection alongside gradual market exposure.
Overall, annual premium policies saw an increase of S$669.9m to S$4.88bn for YTD 4Q2025, showing a growth of 15.9% y-o-y.
LIA Singapore attributed the growth to Singapore’s life insurance industry’s continued innovation of products to meet the evolving and diverse needs of Singapore residents.
Additionally, single premium policies recorded an increase of 42% in weighted premiums in 4Q2025, compared to 4Q2024, bringing total weighted premiums of single premium products to S$1.65bn.
On the other hand, single premium policies saw declines in 1H2025 amid cautious sentiment, but rebounded in 2H2025 as confidence improved. The increase in 4Q2025 was likely driven by year-end liquidity and planning activity, reflecting the cyclical and event-driven characteristics of single premium demand, according to LIA Singapore’s statement.
Integrated Shield Plans (IPs) and Riders valued
Total weighted new business premiums for Individual health insurance reached S$743.4m for YTD 4Q2025, with a 19% increase y-o-y.
Total new business premiums for IPs and IP riders amounted to S$665.6m for YTD 4Q2025, a 19.6% increase compared to the same period in 2024.
IPs and IP rider premiums accounted for 90% of total individual health insurance premiums, while the remaining 10% comprised other medical plans and riders. Approximately 149,000 Singaporeans and Permanent Residents (PRs) were covered by IPs at the end of 2025 compared to 2024.
In total, 3m lives, approximately 71% of Singapore residents, are protected by IPs which provide optional additional coverage on top of MediShield Life.
Increase in claims payouts
In 2025, the life insurance industry paid S$14.23bn, a 5.5% increase in death, total and permanent disability and critical illness payout compared to 2024. A total of S$2.05bn was paid out for death, total and permanent disability and critical illness claims.
The industry paid out S$12.17bn for policies that matured.
Distribution channels
Proportion of new business received from the various channels:
|
Distribution channels
|
By weighted premium
(%)
|
By number of policies
(%)
|
|
Tied representatives
|
28.2
|
37.2
|
|
Bank representatives
|
32.9
|
10.7
|
|
Financial advisors
|
35.7
|
39.5
|
|
Online direct channels
|
1.2
|
10
|
|
Others
|
1.9
|
2.5
|
Manpower
Employment in the life industry decreased by 1.1% in 2025, as compared to 2024. This brings Singapore life insurance industry’s workforce to 9,411 employees as of 31 December 2025.
In the same period, 12,389 representatives held exclusive contracts with companies that operate a tied-agency force.
The future
“Singapore is taking a cautious outlook in 2026 amid continued unpredictability globally. As the life insurance industry continues to be agile and front-footed in adapting to the changing environment, we remain committed to the community,” said Ms Wong.
“Member companies continue introducing innovative ways and products to narrow protection gaps, and we are also collectively investing more in bolstering financial literacy and savviness. Together, we will build a more resilient Singapore to progress into the next sixty years and beyond.”