New figures from GlobalData have estimated Singapore’s life insurance industry to grow by 13.3 per cent in 2022 in terms of gross written premiums (GWP).

GlobalData’s Global Insurance Database found the Singaporean life insurance GWP market is expected to grow at a compound annual growth rate (CAGR) of 10.2 per cent from 2021 to 2026, attributing the growth to the rise in demand for life insurance products and better personalisation of services.

“Better returns on investment-linked life insurance (ILI) products as compared to bank savings products have supported the demand for life insurance,” Manogna Vangari, Insurance Analyst at GlobalData, said.

“ILI products have witnessed more than 30% growth in 2021 and is expected to grow by 9.8% in 2022. This trend is expected to continue in 2023, which will help the Singaporean life insurance segment to remain resilient despite worsening economic conditions.”

Growth rates of 11.2 per cent and 20.6 per cent are also forecast for traditional term life and whole life insurance respectively in 2022, as Singaporeans become more aware of planning their finances for the future especially in the wake of the COVID-19 pandemic.

GlobalData’s insurance database also found new subscription-based and customised insurance offerings have emerged in the wake of economic volatility and increasing restrictions on liquidity, in order to meet the new financial demands of consumers by offering more flexibility on coverage.

The COVID-19 pandemic also accelerated the use of technology in the insurance industry, to provide better customer service and experiences.

“The pandemic-driven change in consumer demand and their purchasing behaviour has prompted insurers to focus on personalization of products and services,” Vangari said.

“Singapore’s life insurance industry growth will remain strong over the next five years. However, recurrent COVID-19 waves and a sluggish economy could cause some challenges for insurers in the near term.”