S&P Global Ratings forecasts robust real GDP growth of 5.2% for Singapore's life insurance sector in 2026, with strong fundamentals to support the growth trajectory through 2027.
The ratings agency expects growth for premiums to normalise at a high level and from a solid base as momentum continues for health-related and wealth management services. The sector’s performance is also likely to remain stable because of strong capitalisation and healthy profitability.
S&P Global Ratings forecasts robust real GDP growth of 5.2% for 2026, which will support growth of disposable income among consumers. At the same time, Singapore is considered the world's second most competitive international wealth management centre, according to Deloitte International Wealth Management Center Rankings 2024. Overseas funds and family offices are gravitating to the country for private banking, and this is providing opportunities for life insurers in the high net worth and ultrahigh net worth segments.
The ratings agency sees growth in premiums of 13% to 17% for the full year in 2026. According to the Life Insurance Association of Singapore, total new business weighted premiums rose 21.4% year-on-year to S$3.6bn in 1H2026.
In 2027, they foresee growth moderating to a more sustainable 7% to 9% as the market normalises against high base effects and aligns with Singapore's real GDP growth expectations.
Three drivers of premium growth
The ratings agency believes the expansion of Singapore life insurers’ core market is underpinned by three long term trends and shifting consumer needs.
An older population needs income security and care
Singapore’s changing population profile continues to drive demand for life insurance products that address longevity needs. As of June 2026, citizens aged 65 and above account for 21.4% of citizens, according to Singapore’s Department of Statistics. A decade earlier, the elderly made up 13.7% of the population.
S&P Global ratings believes that this is likely to create a growing need for retirement income solutions and long-term care coverage as the country’s population ages.
Demand for comprehensive health coverage is rising
Awareness of the importance and rising cost of healthcare is supporting sustained growth in Singapore’s health insurance segment. In 1H2026, integrated shield plan and rider premiums reached S$100.3m ($78.4m), according to the Life Insurance Association of Singapore (LIAS). The figure was up 66.5% from the same period last year.
S&P Global Ratings believes that health insurance products will remain one of the fastest-growing lines in Singapore insurance sector.
Individuals are seeking more robust medical coverage, private healthcare access and specialised coverage such as multistage cancer insurance plans.
Households are accumulating wealth
Demand for ‘protection-plus-investment’ solutions is increasing as household wealth continues to grow. In recent years, investment-linked products have become the dominant engine for premium growth. Individuals are looking to combine life insurance with market-linked returns.
Investment-linked products allow individuals to flexibly manage wealth and protection needs within a single vehicle. They led the life insurance market with a 44% share of weighted new business premiums at S$1.59bn in the first half of 2026, according to LIAS.
The ratings agency believes the trend will continue as long as the performance of global equity markets remains strong.
The high-net-worth and ultra high-net-worth segment will continue rising
S&P Global Ratings believes that Singapore’s status as an international wealth management centre will strengthen. The Monetary Authority of Singapore in August 2026 introduced a series of measures to bolster competitiveness in this area.
Measures aim to attract key asset managers to deploy capital and talent resources in Singapore and deepen industry capabilities. They include tax exemptions for fund management services, a new hedge fund investment program, and the introduction of a specialised investment management work visa.
Singapore government initiatives to streamline family office approvals and to refine tax incentive schemes continue to attract wealth into the ecosystem. Singapore's assets under management amounted to S$6.7tn in 2025.
Average annual growth between 2020 and 2025 was 6.2%. The number of single-family offices established in Singapore over the same period increased to above 2,000 from 400.
Competition could heat up
The ratings agency believes that the Singapore life insurance industry will remain one of the stronger markets in the region.
Premium growth will derive from sustained mass market demand on protection, health, and wealth accumulation. Competition will intensify in the high and ultrahigh net worth segment. Insurers with stronger capitalisation, wide cross-border networks, and access to global investment capabilities and expertise will be in a better position to capture the growth opportunities in this segment.