Continued smooth sailing a safe bet for now

Singapore

SINGAPORE insurers have had a rather smooth sailing and profitable year and this promising outlook is expected to continue into the new year even as a perfect storm brews and greater competition hots up the local insurance scene.

Many foreign players have entered the market marked by a rising Asian middle class, rapidly ageing population, one of the world's highest savings rates and low penetration. Among those granted licences to operate here this year include Swiss insurance group Nationale Suisse, Maybank Group's insurance arm Etiqa, and United States Berkshire Hathaway Specialty Insurance. China Life has also recently said that it would be applying for life coverage.

Observers say more insurers are expected to flock over as they base themselves here to serve clients across the region. Asean's insurance penetration rate stood at around 3.4 per cent last year, about half the global average of 6.3 per cent, according to a report by insurance firm Swiss Re. The penetration rate for non-life insurance is reported to be under one per cent or one-third the global average of…