Singapore life insurance sales up 15.2% in Q3 at S$1.8 billion

[SINGAPORE] The domestic life insurance industry recorded a total of S$1.8 billion in weighted new business premiums for the third quarter of 2025, an increase of 15.2 per cent from the S$1.5 billion in the year-ago period, the Life Insurance Association Singapore (LIA) said on Wednesday (Nov 12).

This was driven by an uptake in annual premium policies, which grew 16.3 per cent on the year to S$1.3 billion for the quarter ended Sep 30, from S$1.1 billion previously.

Single premium policies also rose, by 12.2 per cent to S$464.7 million from S$414 million.

For the first nine months of 2025, total weighted new business premiums stood at S$4.8 billion, marking an increase of 10.4 per cent from that in the year-ago period.

This signalled “sustained consumer confidence and a proactive approach by Singaporeans towards securing their financial future”, LIA said.

This also came amid “continued strong uptake” of annual premium policies – which rose 19.9 per cent to S$3.6 billion in 9M 2025, from around S$3 billion the year before, despite macroeconomic headwinds.

Conversely, single premium policies for 9M declined by 10.8 per cent year on year to S$1.2 billion, from S$1.3 billion.

Wong Sze Keed, president of LIA Singapore, said that the results reflect “steady progress in narrowing Singapore’s protection gap”.

“Singaporeans are not just getting more financially savvy, they are also taking steps to become more adequately insured,” she added. “This is a positive move towards future-proofing their lives and the well-being of their loved ones amid ongoing global uncertainty.”

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The industry recorded S$114.6 billion in the total sum assured for 9M 2025, with financial advisory representatives accounting for 39 per cent of policies.

Tied representatives followed with 36.5 per cent of policies. Bank representatives made up 11.1 per cent, and online direct channels, 10.8 per cent.

Products sold without intermediaries accounted for 2.6 per cent of the policies.

LIA noted an increase in the uptake of investment-linked policies, which represented 43 per cent of the total weighted new business premiums in 9M.

For the period, nearly 113,000 Singaporeans and permanent residents took up integrated shield plans (IPs), which remain a “vital cornerstone”, LIA said.

It noted around 71 per cent of Singapore residents, or three million individuals, are protected by IPs to date.

The life insurance industry paid out S$10.2 billion to policyholders and beneficiaries in 9M 2025, a 31.3 per cent decline compared to the same period last year.

Of this, S$8.6 billion was for policies that had matured. The remaining S$1.6 billion was for death, critical illness or disability claims for around 17,000 policies.

Healthcare costs to rise

Wong noted that the outlook for the industry remains “positive” as Singapore’s economy continues on an uptrend, “having grown 2.9 per cent in Q3 2025 compared to the same period in 2024”.

However, she added that healthcare costs are expected to rise further in 2026, with the Asia-Pacific projected to post the highest medical inflation worldwide at 14 per cent.

“Against this backdrop, the life insurance industry remains committed to evolving health insurance products that deliver greater value to individuals, while working closely with the medical fraternity, government agencies and consumers to ensure that healthcare remains sustainable and accessible for all,” she said.