Singapore Insurance Market Intelligence: 2011 Edition
Singapore is one of the most developed insurance markets in Asia. The Monetary Authority of Singapore is overall responsible for the development, supervision and regulation of the insurance industry. Insurance business in Singapore comprises life and general insurance. The general insurance business provides coverage for a wide range of risks such as fire, marine and aviation, motor, workmen's compensation and public liability. The range of products offered by life insurers includes traditional whole-of-life, endowment, term and annuity plans as well as investment-linked insurance plans.
The life insurance premiums witnessed a downfall in 2009 due to decline in the sales of new business policies and new annuity business policies. In addition, the decline was most significant for single premium sales since these products are sensitive to the market sentiments. On the other hand, the non-life insurance segment showed a slight increase in net premiums due to effective management of underwriting losses in the year 2009.
Singapore’s non-life market segment is dominated by American Home and the top 5 Non-Life companies constitute nearly half of the market share in 2009. Great Eastern Life is the largest provider of life insurance services. Strong rebound in the Singaporean economy, rising motor sales and increasing consumer awareness of the need for medical coverage in the face of rising medical costs are major factors that will drive the Singaporean insurance market in future. It is forecasted that the insurance premiums will grow but at a slower pace in coming years on account of slow economic recovery.
The life insurance premiums witnessed a downfall in 2009 due to decline in the sales of new business policies and new annuity business policies. In addition, the decline was most significant for single premium sales since these products are sensitive to the market sentiments. On the other hand, the non-life insurance segment showed a slight increase in net premiums due to effective management of underwriting losses in the year 2009.
Singapore’s non-life market segment is dominated by American Home and the top 5 Non-Life companies constitute nearly half of the market share in 2009. Great Eastern Life is the largest provider of life insurance services. Strong rebound in the Singaporean economy, rising motor sales and increasing consumer awareness of the need for medical coverage in the face of rising medical costs are major factors that will drive the Singaporean insurance market in future. It is forecasted that the insurance premiums will grow but at a slower pace in coming years on account of slow economic recovery.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Considered as one of the Most Developed Insurance Markets in Asia
1.1.2 Insurance Market has a Relatively Strict Market Access System
1.1.3 Comprises of life and general insurance sectors
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Decline in life insurance premiums due to falling new business and annuity policies
1.2.1.2 Effective management of underwriting losses resulted in rise in non-life premiums
1.2.1.3 Sales of investment linked products and CPF Investment Scheme (CPFIS) gaining momentum in Q110
1.2.2 Market Segments
1.2.2.1 Life insurance sector as major contributor to industry’s growth
1.2.2.2 Need for medical coverage led to rise in demand for health insurance
1.2.2.3 Motor insurance and worker’s compensation as largest contributor in non-life premiums
1.2.3 Market Density & Penetration
1.2.3.1 Fluctuating Penetration Rates; registered decline in 2009 compared to 2008
1.2.4 Market Share
1.2.4.1 Highly competitive and fragmented nature of non-life insurance sector
1.2.4.2 Overall industry dominated by five major players
1.2.4.3 Great Eastern Life as major life insurer; American home as market leader in non-life insurance sector
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Amendments in Regulations
Prudential Plc. Acquired UOB’s Life Insurance Unit
Aviva Re-Enters Singapore's General Insurance Market
2.2 Market Drivers
Strong Rebound in Economy
Rising Motor Market
Rising Need for Health Insurance Policies
Rising Employment
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Government initiatives in form of tax benefits and grants expected to improve economic conditions
4.2 Non-Life Market to Grow, Especially the Motor and Health Segments
1.1 Industry Structure
1.1.1 Considered as one of the Most Developed Insurance Markets in Asia
1.1.2 Insurance Market has a Relatively Strict Market Access System
1.1.3 Comprises of life and general insurance sectors
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Decline in life insurance premiums due to falling new business and annuity policies
1.2.1.2 Effective management of underwriting losses resulted in rise in non-life premiums
1.2.1.3 Sales of investment linked products and CPF Investment Scheme (CPFIS) gaining momentum in Q110
1.2.2 Market Segments
1.2.2.1 Life insurance sector as major contributor to industry’s growth
1.2.2.2 Need for medical coverage led to rise in demand for health insurance
1.2.2.3 Motor insurance and worker’s compensation as largest contributor in non-life premiums
1.2.3 Market Density & Penetration
1.2.3.1 Fluctuating Penetration Rates; registered decline in 2009 compared to 2008
1.2.4 Market Share
1.2.4.1 Highly competitive and fragmented nature of non-life insurance sector
1.2.4.2 Overall industry dominated by five major players
1.2.4.3 Great Eastern Life as major life insurer; American home as market leader in non-life insurance sector
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Amendments in Regulations
Prudential Plc. Acquired UOB’s Life Insurance Unit
Aviva Re-Enters Singapore's General Insurance Market
2.2 Market Drivers
Strong Rebound in Economy
Rising Motor Market
Rising Need for Health Insurance Policies
Rising Employment
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Government initiatives in form of tax benefits and grants expected to improve economic conditions
4.2 Non-Life Market to Grow, Especially the Motor and Health Segments
LIST OF CHARTS:
Singapore Annual Insurance Premium: 2002-2009
Singapore Regular and Single Premiums Growth for Life Insurance: Q110 Vs. Q109
Singapore Gross Premium for Non-Life Insurance: Q110 Vs. Q109
Singapore Insurance Premium Share (%) by Segment – 2009
Singapore Insurance Premium by Segment – 2002-2009
Singapore Life Insurance Premium Share (%) by Segment – 2009
Singapore Non-Life Insurance Premium Share (%) by Segment: 2009
Singapore Insurance Density (US$): 2002 – 2009
Singapore Insurance Penetration: 2002 – 2009
Singapore Major Non-Life Insurers’ Market Share: 2009
Singapore Major Life Insurers’ Market Share: 2009
Singapore Gross Domestic Product at Current Market Prices: 2002 – 2009
Singapore Motor Vehicles Sales ('000 Units): 2003 – 2009
Singapore Motor Insurance Net Premiums: 2005-2009
Household Health Expenditure: 2005-2009
Aging Population in Singapore: 2003-2009
Singapore: Rising Employment: 2002-2009
Forecast: Singapore’s Insurance Industry: 2009A - 2013F
Forecast: Singapore’s Life & Non-Life Insurance Industry: 2009A 2013F
LIST OF TABLE:
Key Macroeconomic Indicators: 2009A – 2013F
Singapore Annual Insurance Premium: 2002-2009
Singapore Regular and Single Premiums Growth for Life Insurance: Q110 Vs. Q109
Singapore Gross Premium for Non-Life Insurance: Q110 Vs. Q109
Singapore Insurance Premium Share (%) by Segment – 2009
Singapore Insurance Premium by Segment – 2002-2009
Singapore Life Insurance Premium Share (%) by Segment – 2009
Singapore Non-Life Insurance Premium Share (%) by Segment: 2009
Singapore Insurance Density (US$): 2002 – 2009
Singapore Insurance Penetration: 2002 – 2009
Singapore Major Non-Life Insurers’ Market Share: 2009
Singapore Major Life Insurers’ Market Share: 2009
Singapore Gross Domestic Product at Current Market Prices: 2002 – 2009
Singapore Motor Vehicles Sales ('000 Units): 2003 – 2009
Singapore Motor Insurance Net Premiums: 2005-2009
Household Health Expenditure: 2005-2009
Aging Population in Singapore: 2003-2009
Singapore: Rising Employment: 2002-2009
Forecast: Singapore’s Insurance Industry: 2009A - 2013F
Forecast: Singapore’s Life & Non-Life Insurance Industry: 2009A 2013F
LIST OF TABLE:
Key Macroeconomic Indicators: 2009A – 2013F
