Singapore's life insurance sector has achieved a record-high performance in 1H2025 with nearly S$2.99bn ($2.33bn) in new business total weighted premiums since the pandemic, according to the Life Insurance Association, Singapore (LIAS). The figure marks an increase of 7.7% compared to the same period a year ago.
This growth was largely driven by annual premium policies, which saw a 22% year-on-year increase in weighted new business premiums, amounting to S$2.26bn in 1H2025. In contrast, single premium policies recorded a 21.3% decline in weighted new business premiums over the same period, coming up to S$722.9m for 1H2025.
Investment-linked policies (ILPs) continued to lead industry growth, with weighted new business premiums rising 31.3% year-on-year, from S$975m in 1H2024 to S$1.28bn in 1H2025. ILPs accounted for 43% of total new business in 1H2025, building on the momentum recorded in the first quarter of the year.
In-force premiums for group life and health (L&H) continue to show steady growth with a 15% increase from 2Q2024 to 2Q2025, recording a total of S$2.76bn, with accident and health accounting for 74.1% and life making up 25.9%.
“The continued growth in annual premium policies and ILPs demonstrates Singaporeans’ focus on long-term financial planning and security,” said LIAS president Wong Sze Keed.
“This trend is supported by renewed optimism as Singapore’s economy posted a strong 4.3% year-on-year growth in 2Q2025, outpacing Q1 figures.”
Said Ms Wong, “Amid existing global uncertainties and market volatility, consumers are seeking balance between protection and wealth accumulation. The sustained demand for ILPs reflects a prudent yet ambitious mindset, one focussed on safeguarding against global current unpredictability while capturing growth opportunities in an evolving financial landscape.”
Consumers purchase fewer, but more comprehensive policies
While total sum assured and total weighted premium rose by 1.7% and 7.7% year-on-year respectively, the total number of policies declined by 18.6% year-on-year, from 711,922 policies in 1H2024 to 579,343 policies in 1H2025.
This could suggest that consumers may be purchasing fewer, but more comprehensive policies, and opting for coverage that offers greater protection or investment potential per policy.
IPs remain a critical component of health insurance coverage
Approximately 69,000 Singaporeans and permanent residents took up new Integrated Shield Plans (Ips) for 1H2025. In total, 2.99m lives, approximately 72% of Singapore residents, are protected by IPs, which provide coverage on top of MediShield Life.
Total new business premiums for individual health insurance for 1H2025 amounted to S$373.7m, an increase of 69.3% compared to the same period last year. Overall, IPs and IP rider premiums accounted for 89.9% (S$336.1m) and the remaining 10.1% (S$37.6m) comprised other medical plans and riders.
Claims payouts
Between 1 January 2025 and 30 June 2025, the life insurance industry paid out S$6.35bn to policyholders and beneficiaries, a 42.1% decrease compared to the same period last year.
Of this amount, S$5.32bn was for policies that matured. The remaining S$1.03bn was for death, critical illness or disability claims for more than 10,900 policies.