Singapore's life insurance industry paid out more than S$15bn ($11.67bn) in claims and maturity benefits during the first nine months of 2026, highlighting its continued role in providing financial protection and supporting long-term financial planning. This is according to the Life Insurance Association Singapore (LIA Singapore), which said the payouts helped individuals and families manage the financial impact of illness, disability and loss, while also meeting important financial goals. Maturity benefits accounted for approximately 74% of the total, amounting to S$11.15bn. These payouts provide policyholders with funds to support major life milestones, including retirement, children's education and other financial commitments.
Health insurance claims also formed a significant portion of industry payouts, with S$2.23bn paid under individual health policies between January and September 2026. Of this amount, S$2.11bn came from Integrated Shield Plans (IPs) and their riders, while S$115.2m was paid under other medical plans and riders. Claims under IPs and riders increased 6.7% quarter-on-quarter, reaching S$742m in Q3 2026. Meanwhile, individual life policies paid out another S$1.68bn for critical illness, death and total permanent disability claims. Critical illness claims alone amounted to S$756m. As of September 2026, approximately 3m people in Singapore were covered by Integrated Shield Plans, while total individual health insurance coverage, including other medical plans and riders, reached around 3.35m lives.
On the business front, the industry recorded a 15% year-on-year increase in weighted new business premiums, rising from S$4.76bn in the first nine months of 2025 to S$5.47bn over the same period in 2026. Investment-linked policies (ILPs) were a major contributor to this growth, with premiums increasing 22.6% to S$2.51bn, representing 46% of the industry's total weighted new business premiums. Their share rose further to 49.7% in Q3 2026, compared with 42.7% in Q1 and 44.9% in Q2. Participating policies also registered moderate growth of 5.7%, reaching S$1.24bn. However, growth in the Integrated Shield Plan segment showed signs of slowing, as new business premiums for IPs and riders fell 52.4% quarter-on-quarter to S$26.8m in Q3.
LIA Singapore President Wong Sze Keed said the growing popularity of investment-linked policies reflects consumers' increasing interest in combining savings and investment objectives with insurance protection. She noted that professionally managed funds, financial advice and evolving product designs may be contributing to their appeal. However, she emphasised the importance of consumer understanding, particularly regarding investment risks, fees, coverage and product suitability. LIA Singapore is working with the Monetary Authority of Singapore (MAS) to strengthen product disclosures through Product Highlight Sheets, helping consumers better assess the costs and benefits of ILPs. Through consumer guides, educational content and financial literacy workshops, the association also aims to equip individuals with the knowledge needed to make informed insurance and financial planning decisions.