Singapore Domestic Insurance Grows Amid Rising Claims

Singapore’s domestic general insurance sector recorded notable growth in 2025, with gross written premiums (GWP) increasing 8.4% year-on-year (YoY) to reach US$4.76 billion (S$6.1 billion), according to data from the General Insurance Association (GIA) of Singapore.

The combined GWP for domestic and offshore segments grew by 3.7% YoY to US$8.74 billion (S$11.2 billion), reflecting sustained expansion across both local and international operations.

Despite the growth in revenue, net incurred claims for the domestic market rose 8.7% YoY to US$1.40 billion (S$1.8 billion), an increase of US$112.48 million (S$144.2 million) compared with 2024. The GIA noted that the rise was mainly due to higher claims in the motor and property insurance sectors.

Motor insurance claims climbed 11% YoY, even as the total number of accidents remained stable. The increase was largely attributed to greater accident severity, with road traffic fatalities reaching a ten-year high in 2025. Property claims also rose, following a 3% YoY increase in fire incidents to 2,050 cases, as reported by the Singapore Civil Defence Force, alongside several major property losses.

Despite the heightened claims, the sector’s underwriting performance remained strong. Domestic underwriting profit expanded 32% YoY to US$225.42 million (S$289 million), up from US$170.82 million (S$219 million) in 2024. This growth demonstrates insurers’ ability to manage risks effectively while maintaining profitability in a challenging environment.

Ronak Shah, President of the GIA, emphasised that the increase in claims highlights the critical role of insurers in supporting individuals and businesses in recovering financially from accidents, fires, and other unforeseen events.

The 2025 results underline both the resilience and adaptability of Singapore’s domestic insurers, showcasing their capacity to balance growth with a rising claims burden while continuing to provide financial protection to policyholders.

(Exchange rate: US$1.00 = S$1.28)