Singapore’s life insurance industry achieved 11.3% growth in 2025, reaching SG$6.53 billion in total weighted new business premiums, according to figures released Wednesday by the Life Insurance Association, Singapore (LIA).
The growth was primarily driven by increased demand for annual premium business, with the industry recording 13.0% growth in the fourth quarter compared to the same period in 2024, the association said.
Despite ongoing global economic challenges, the sector made progress in narrowing the nation’s protection gap, achieving a 3.1% year-on-year increase in total sum assured for the full year 2025. Financial Adviser Representatives contributed 45.3% of this growth, while Tied Representatives accounted for 28.8%, according to LIA.
“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,” said Wong Sze Keed, president of LIA Singapore. “It is heartening that Singaporeans recognize this.”
Annual premium policies increased by SG$669.9 million to SG$4.88 billion for 2025, representing 15.9% year-on-year growth. The association attributed the increase to sustained demand for products offering greater flexibility, affordability, and cashflow management, designed for long-term protection alongside gradual market exposure.
Single premium policies recorded a 42.0% increase in weighted premiums in the fourth quarter compared to the same period last year, bringing total weighted premiums of single premium products to SG$1.65 billion for 2025. The notable fourth-quarter increase was likely driven by year-end liquidity and planning activity, the association said.
Investment-linked plans, which combine life insurance protection with market-linked investment returns, grew 27.8% year-on-year, increasing from SG$2.253 billion to SG$2.880 billion.
Integrated Shield Plans (IPs) and IP Riders continued to show strong performance, with total weighted new business premiums for individual health insurance reaching SG$743.4 million for 2025, a 19.0% increase year-on-year. Approximately three million lives, or 71% of Singapore residents, are now protected by IPs.
The industry paid SG$14.23 billion to policyholders and beneficiaries in 2025, including SG$2.05 billion for death, total and permanent disability, and critical illness claims, representing a 5.5% increase compared to last year.
Looking ahead, Wong said the industry remains committed to introducing innovative products to narrow protection gaps and investing in financial literacy initiatives amid continued global unpredictability in 2026.
Across the Asia-Pacific region, insurers are expected to maintain premium expansion and resilient margins in life and health lines, driven by structured underwriting and growing demand for protection solutions. Many are also planning to increase allocations to private assets and alternative investments, reflecting a strategic pivot to diversify portfolios and support long-term returns.
