Singapore’s life insurance industry paid out more than $11.5 billion (S$15 billion) in claims and maturity benefits during the first nine months of 2026, with matured policies accounting for the largest share. Maturity benefits accounted for approximately 74% of total payouts, reaching $8.58 billion (S$11.15 billion) between January and September 2026, according to data from the Life Insurance Association Singapore (LIA Singapore).
Rising Health Claims and Critical Illness Payouts
Claims under individual health insurance policies totalled $1.72 billion (S$2.23 billion), of which $1.62 billion (S$2.11 billion) came from Integrated Shield Plans (IPs) and their riders. IP riders accounted for 24.1% of these claims, while other medical plans and riders contributed $88.6 million (S$115.2 million). Claims under IPs and their riders increased 6.7% quarter-on-quarter to $570.8 million (S$742 million) in the third quarter, from $534.7 million (S$695.1 million) in the previous quarter. Another $1.29 billion (S$1.68 billion) was paid for critical illness, death, and total permanent disability claims under individual life policies, including $581.5 million (S$756 million) for critical illness.
As of September 2026, approximately three million people in Singapore were covered by IPs, while 3.35 million had individual health insurance, including other medical plans and riders. Wong Sze Keed, President of LIA Singapore, noted that people are making important decisions about their healthcare needs, insurance protection, and financial future, often while managing other pressures on the family budget.
The industry recorded a 15% year-on-year increase in weighted new business premiums to $4.21 billion (S$5.47 billion) in the first nine months of 2026, from $3.66 billion (S$4.76 billion) a year earlier. Growth moderated in the third quarter, with weighted new business premiums rising 4.2% year-on-year to $1.42 billion (S$1.84 billion), compared with $1.36 billion (S$1.77 billion) in the same quarter of 2025. On a quarterly basis, premiums declined 4.3% from $1.48 billion (S$1.93 billion) in the second quarter.
Investment-Linked Plans Gain Market Share
Investment-linked plans (ILPs) accounted for 46% of total weighted new business premiums during the nine-month period, up from 43% a year earlier and 37% in 2024. Wong said the growing share of ILPs suggests consumers are placing greater emphasis on savings and investments alongside insurance protection. The industry is also working closely with the Monetary Authority of Singapore to strengthen disclosures through Product Highlight Sheets to help customers better understand the overall costs and benefits of ILPs and their suitability to meet needs.
Related Post: Singapore opens center to shift focus from treating illness
Financial adviser (FA) representatives and tied representatives together accounted for 79.2% of new policies purchased during the nine-month period, up from 75.5% a year earlier. The two channels sold a combined 723,763 policies. FA representatives accounted for the largest share of weighted new business premiums at 37.9%, overtaking bank representatives, which led during the same period last year.
Premiums generated through FA representatives increased 27.9% year-on-year to $1.59 billion (S$2.07 billion), from $1.25 billion (S$1.62 billion), contributing approximately 63% of the industry’s $549.2 million (S$714 million) increase in weighted new business premiums. FA representatives also accounted for 42.3% of the industry’s total sum assured, equivalent to $36.0 billion (S$46.8 billion).
Tied representatives remained the largest distribution channel by number of policies sold, with 362,440 new policies, up 9.7% from 330,340 a year earlier. They accounted for 39.7% of new policies, narrowly ahead of FA representatives at 39.6%. Bank representatives contributed 32.7% of weighted new business premiums and 10.9% of new policies, while online direct channels accounted for 1% and 7.5%, respectively. Policies purchased without intermediaries contributed 2.1% of weighted new business premiums and 2.3% of new policies.
Growth Outlook Slows Amid Healthcare Costs
Singapore‘s life insurance premium growth is expected to slow to as much as 9% in 2027 from 17% this year, as rising healthcare claims threaten profitability despite strong demand for retirement and investment products, according to S&P Global Ratings. The rating company expects growth to slow in 2027 because of the high base in 2026 and a return to economic growth rates. Still, it expects insurers to maintain strong capitalization and healthy profitability. S&P expects demand for retirement income solutions and long-term care coverage to increase as Singapore’s population ages.
