Singapore’s life insurance industry has achieved a record-high performance in the first half of 2025, with total weighted new business premiums reaching S$2.99 billion, marking a 7.7% increase compared to the same period last year. This growth was primarily driven by annual premium policies, which saw a significant 22% year-on-year rise, according to the Life Insurance Association, Singapore (LIA Singapore).
Investment-linked policies (ILPs) have been a major contributor to this growth, with premiums increasing by 31.3% year-on-year, from S$975 million in 1H 2024 to S$1.28 billion in 1H 2025. ILPs accounted for 43% of total new business in the first half of the year. LIA Singapore President Wong Sze Keed noted, “The continued growth in annual premium policies and ILPs demonstrates Singaporeans’ focus on long-term financial planning and security.”
Despite a decline in single premium policies by 21.3%, the overall industry performance remains robust. The total sum assured rose by 1.7% year-on-year to S$71.4 billion, although the number of policies decreased by 18.6%, suggesting a shift towards fewer but more comprehensive policies.
Integrated Shield Plans (IPs) continue to be a critical component of health insurance, with approximately 69,000 new IPs taken up in 1H 2025. The life insurance sector paid out S$6.35 billion in claims during this period, a 42.1% decrease from the previous year.
Looking ahead, Wong emphasised the industry’s commitment to enhancing financial literacy and simplifying claims processes to better serve Singaporeans. As the nation celebrates 60 years of independence, the focus remains on building a trusted and transparent life insurance landscape.
“`
