Singapore’s Accident and Health Insurance Market Set for 38% Growth by 2029

The personal accident and health (PA&H) insurance sector in Singapore is poised for substantial growth, with projections indicating a 38% increase by 2029. According to a recent GlobalData report published by the Singapore Business Review, the market will grow from US$8.5 billion in 2024 to US$11.7 billion by the end of the decade, driven by a compound annual growth rate (CAGR) of 6.6%.

This expansion will increase the PA&H segment’s share of the total insurance market from 15.3% in 2024 to 17.3% by 2029. The surge in demand for private health insurance, combined with premium price hikes, is expected to fuel this growth.

In 2024, the sector witnessed an impressive 8.9% growth, largely driven by heightened health and financial awareness. Aarti Sharma, an insurance analyst at GlobalData, highlighted that demographic shifts, including an ageing population, alongside rising healthcare costs and a rebound in tourism, are contributing factors to this robust market expansion.

One key driver of growth is the increasing popularity of integrated shield plans (IPs) and supplementary riders offered by private insurers. In mid-2024, approximately 71% of Singapore’s population—around 2.9 million people—were covered by IPs, and new business premiums for individual health insurance rose by 7.1% in the first half of the year.

Additionally, the Singapore government is set to implement a phased 35% increase in MediShield premiums starting in April 2025. This move aims to enhance coverage and adjust deductibles and co-insurance, further driving market demand.

Demographic factors, particularly an ageing population, are adding to the need for expanded health and accident coverage. As of June 2024, nearly 20% of Singapore’s population was aged 65 or older. Moreover, the rise in international tourism, reflected by a 16.7% year-on-year increase in tourist arrivals in October 2024, has led to an uptick in demand for travel insurance, often bundled with personal accident coverage.

With premiums rising and demographic trends favourable, the outlook for Singapore’s PA&H insurance market remains strong. The sector is well-positioned to capitalise on these shifts, ensuring a vibrant future for personal accident and health insurance coverage in the city-state.