Singapore life insurance sales surge in first half, led by boost in investment-linked plans

SINGAPORE – Sales of life insurance policies surged in the first half of 2025 as consumers sought balance between protection and wealth accumulation.

Weighted new business premiums, a rough measure of new sales, rose 7.7 per cent to $2.99 billion in the six months to June 30 – the highest first-half figure since the Covid-19 pandemic.

The increase was driven largely by annual premium policies, which rose 22 per cent to $2.26 billion as compared with the same six months in 2024, noted the Life Insurance Association (LIA) Singapore on Aug 13.

By contrast, single premium policies fell 21.3 per cent to $722.9 million in weighted premiums.

Investment-linked policies (ILPs) continued to set the pace, with weighted new business premiums rising 31.3 per cent to $1.28 billion in the first half. These policies accounted for 43 per cent of total new business.

LIA Singapore president Wong Sze Keed said the continued growth in annual premium policies and ILPs demonstrates Singaporeans’ focus on long-term financial planning and security.

“Amid existing global uncertainties and market volatility, consumers are seeking balance between protection and wealth accumulation,” she added.

“The sustained demand for ILPs reflects a prudent yet ambitious mindset – one focused on safeguarding against global, current unpredictability while capturing growth opportunities in an evolving financial landscape.”

Total sum assured in the first half rose 1.8 per cent to $71.4 billion, with financial advisers accounting for 42.6 per cent or $30.4 billion, while tied representatives brought in 29.9 per cent or $21.4 billion.

While total sum assured and total weighted premium rose, the total number of policies in the first half declined 18.6 per cent year on year to 579,343.

LIA Singapore said this could suggest that consumers may be buying fewer but more comprehensive policies, opting for coverage that offers greater protection or investment potential.

About 69,000 Singaporeans and permanent residents took up new Integrated Shield Plans (IPs) in the first half. Nearly three million people – about 72 per cent of the resident population – have IPs, which provide coverage on top of the MediShield Life health coverage scheme.

Total new business premiums for individual health insurance increased 69.3 per cent year on year to $373.7 million in the first half.

IPs and IP rider premiums made up 89.9 per cent, or $336.1 million, with the remaining 10.1 per cent, or $37.6 million, comprising other medical plans and riders.

Around $6.35 billion was paid out to policyholders and beneficiaries in the first half, down 42.1 per cent from the same period a year earlier.