Property Insurance Market in Singapore

Property and Casualty Insurance in Singapore Market Analysis

The Singapore Property & Casualty Insurance Market is expected to register a CAGR of greater than 5% during the forecast period.

The Singapore property insurance sector remains profitable due to disciplined underwriting, adequate reinsurance coverage, and growing premiums from compulsory fire insurance. The primary growth driver is mandatory fire insurance, which has become a requirement when purchasing homes from the Housing and Development Board (HDB) as well as taking out home loans. According to the HDB, more than three-quarters of Singapore residents live in flats sold by the board.

The property and casualty insurance industry in Singapore has weathered the global financial crisis well. While the global financial crisis in the past had some impact on solvency positions of both the life and non-life insurance sectors, the introduction of risk-sensitive solvency requirements, early warning systems, and intensive risk-based supervision enabled the insurance sector to weather the crisis relatively well.

The Monetary Authority of Singapore (MAS) has made significant progress in improving the insurance regulatory regime and supervisory practice since the initial Financial Sector Assessment Program (FSAP). The updated regulatory framework and supervisory practices have a significantly high level of observance of the Insurance Core Principles (ICPs).

The COVID-19 pandemic resulted in a flat growth rate for the sector. The gross premium for the sector was marginally decreased by 0.2% for the period. The Property and Casualty sector started to show improvement as measures and COVID-related restrictions were eased. With the key economic and social activities regained, the property and casualty sector has achieved a stable growth of an 8% increase in annual gross premiums.

Property and Casualty Insurance in Singapore Market Trends

Motor Insurance Dominates the Property and Casualty Insurance of Singapore

Motor Insurance contributes more than one-fourth of the gross premium written for general insurance in the country. In the previous year, the vehicle insurance segment grew at a steady pace, with a 2.7 percent raise over the previous year. As additional operations restarted with the easing of the lockdown, the segment's total claims paid out increased by 8.3%, and the number of fatal accidents increased by One-Fourth. Road traffic incidents have also increased the number of injuries. As Singapore moves closer to an endemic new normal, motor claims are projected to rise in the coming year.

Various Insurance Companies started working closely with key partners and stakeholders like the Singapore Road Safety Council and Traffic Police on the way to improving education and awareness for road users in Singapore. Sales of motor vehicles have improved post covid, reflecting the improvement in customer demand, which is expected to support the growth in motor insurers' premiums in the short term. The total of insurance companies has been increasing, especially in the last two years, with confined and direct insurers leading the industry.

Property Insurance is on Rise with Increase in Singapore’s Commercial Real Estate Investment

Property Insurance contribution to the total gross premium written in Singapore is increasing and represent one of the largest segment in general insurance. In the previous year, the volume of commercial real estate investment in Singapore increased by a factor of three. With development activities gradually increasing, the property insurance category is likely to continue to rise. The demand for private properties in Singapore has been on the rise, primarily from high-net-worth individuals, driving prices and rental rates to new heights.

The city-state's vibrant economy, infrastructure, and efficient governance have attracted investors, both domestic and international, seeking to capitalize on its favorable business environment. The surge in demand for private properties reflects the confidence in Singapore's long-term economic prospects. The real estate market's positive performance reinforces the city-state's standing as a global financial hub and a preferred destination for property investors which is driving the property insurance sector of Singapore.

Property and Casualty Insurance in Singapore Industry Overview

The Property and Casualty Insurance Market of Singapore is fragmented in nature with the presence of major international and domestic players. By partnerships and technological adoptions small to mid-size companies are tapping the market. Some of the major players operating in the property and casualty insurance market in Singapore include AXA Singapore, Chubb Singapore, Ergo Insurance Pvt.Ltd, NTUC Income, and Liberty Insurance over others.

Property and Casualty Insurance in Singapore Market Leaders

Property and Casualty Insurance in Singapore Market News

• June 2023: Chubb, the publicly traded property and casualty insurance company, has launched an aviation hub in Singapore. This strategic move serves to bolster the company's general aviation and aerospace business, demonstrating its commitment to growth and innovation in the sector.
• In January 2022, AXA Insurance introduced an AI-powered financial planning tool to help customers keep track of their financial health and discover solutions that can address their needs and goals. The "My FinScore" program calculates a personal financial satisfaction score based on an individual's financial goals, existing savings, and protection coverage and compares it to simulated personal and market risks that affect one's future financial health.