Soaring Property Prices Reshape Singapore’s Insurance Market

Singapore’s property sector is undergoing a significant transformation, with escalating house prices and a buoyant rental market acting as powerful catalysts for the insurance industry. According to the GlobalData Plc October 2025 report, the property insurance segment is projected to grow by 6.3% this year, underpinned by a robust pipeline of residential developments and a steady appreciation in asset values.

A Billion-Dollar Industry by 2030

Property insurance has firmly established itself as the third-largest pillar of Singapore’s general insurance sector, accounting for 19% of total premiums in 2025. This momentum shows no signs of waning; analysts forecast that gross written premiums will climb at an annual rate of 6.4%, reaching a staggering $1.2 billion by 2030.

The resurgence of the private residential market is a primary driver of this trend. Following three years of relative stagnation, developers saw a record-breaking year in 2025, selling 10,815 units. While global trade uncertainties caused a brief tremor in sales during the second quarter, the market rebounded sharply in the latter half of the year as domestic interest rates began to soften.

Key Market Projections for 2026

The outlook for the coming year remains optimistic for landlords and insurers alike, even as the market adapts to new supply.

High-Net-Worth Demand and Regulatory Shifts

The "top end" of the market is witnessing particularly explosive growth. In the third quarter of 2025, transactions for properties valued at $5 million or more surged by over 20% compared to the previous year. With average unit prices for these luxury assets hovering near the $10 million mark, there is a burgeoning demand for bespoke, high-limit home policies that go far beyond standard coverage.

Furthermore, regulatory interventions are indirectly boosting the insurance sector. In July 2025, the Singaporean government extended the minimum property holding period from three to four years. This shift encourages homeowners to view their properties as long-term investments, moving away from basic "fire-only" policies toward comprehensive, multi-year home insurance plans.

Digital Evolution and Rising Risks

Safety concerns are also playing a pivotal role. Data from the Ministry of Home Affairs revealed an 8.6% rise in residential fires, totalling 1,051 cases last year. This has exposed a critical "coverage gap" among HDB (Housing and Development Board) residents. While mandatory HDB fire insurance covers the building's structure, it leaves personal contents and expensive renovations unprotected—a realization that is driving a surge in voluntary home content insurance.

To capture this growing market, insurers are pivoting toward digital distribution. By 2026, online policy purchases and "embedded insurance"—where coverage is bundled directly into rental agreements on leasing platforms—are expected to become the industry standard, offering tenants and landlords a more seamless path to protection.