SINGAPORE: According to research from GlobalData published by the Singapore Business Review, the city-state’s accident and health (PA&H) insurance market is set for substantial expansion, with projections indicating a compound annual growth rate (CAGR) of 6.6%, growing from $8.5 billion in 2024 to $11.7 billion by 2029.
This growth will drive the PA&H segment’s share of the total insurance market up from 15.3% in 2024 to 17.3% by 2029, fueled by increasing demand for private health insurance and adjustments in premium pricing.
In 2024, the PA&H insurance sector saw an impressive growth rate of 8.9%, with heightened health and financial awareness playing a significant role in boosting demand.
Aarti Sharma, an insurance analyst at GlobalData, highlighted that the sector’s momentum is further supported by demographic shifts, including an ageing population, premium price hikes due to inflation, and a resurgence in tourism.
One of the main drivers behind this growth is the popularity of integrated shield plans (IPs) and supplementary riders provided by private insurers, in addition to Singapore’s MediShield Life program, which offers basic health coverage.
By mid-2024, approximately 71% of Singapore’s population—around 2.9 million people—was covered under IPs, with new business premiums for individual health insurance seeing a 7.1% year-on-year increase during the first half of 2024.
Sharma noted that the increase in premiums, spurred by rising healthcare costs, is also expected to sustain the market’s upward trajectory.
Additionally, the Singaporean government is implementing a phased 35% increase in MediShield premiums starting in April 2025, which is set to enhance coverage and adjust deductibles and co-insurance, further driving growth in the sector.
Demographic factors, particularly the ageing population, also contribute to the market’s expansion.
As of June 2024, nearly 20% of Singapore’s population was aged 65 or older, highlighting the growing need for more extensive health and accident coverage.
Moreover, the uptick in international tourism—reflected by a 16.7% year-on-year rise in tourist arrivals in October 2024—has spurred additional demand for travel insurance, often bundled with personal accident coverage.
The outlook for Singapore’s PA&H insurance market remains positive, with insurers well-positioned to take advantage of these favorable trends.
Rising premiums, demographic changes, and increased tourism all indicate a vibrant future for comprehensive health and accident insurance coverage in the city-state.