Singapore's Insurance Market Witnesses Significant Growth
Singapore's general insurance market experienced robust growth last year, with total premium income from domestic and overseas markets reaching SGD 10.2 billion, a 10.1% increase from the previous year. The industry also recorded an underwriting profit of SGD 608.1 million, underscoring its crucial role in protecting consumers and businesses.
In the domestic market, total premium income grew by 7.3% to SGD 5.2 billion, yet the underwriting profit fell by 11.2% to SGD 262.9 million. Net incurred claims surged by 44%, with the motor insurance sector seeing the most significant increase in claims, up by 73.3% to SGD 573.4 million, mainly due to the rise in traffic accidents in 2023.
Among various business segments, travel insurance stood out with a 37.6% growth in total premium income, in line with the strong recovery of global business and leisure travel. Health insurance saw a 12.1% increase in total premium income, while employers' liability insurance grew by 10.2%, consistent with the expansion of Singapore's local and foreign workforce. The underwriting profit for the employers' liability insurance segment rose to SGD 45.7 million, attributed to improved workplace safety and a reduction in workplace fatalities.
Moreover, Sumitomo Life Insurance's acquisition of Singapore Life Holdings (Singlife) has been approved by the regulatory authorities in Singapore and Japan, making Singlife a subsidiary of Sumitomo Life. This transaction reflects Sumitomo Life's confidence in Singlife and will not disrupt its daily operations. It is expected to help Singlife achieve its long-term growth goals and secure the necessary capital for regional expansion and continued development as a comprehensive financial services company. Valued at SGD 4.6 billion, this acquisition is one of the largest insurance mergers and acquisitions in Southeast Asian history.
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