Singapore’s top 50 insurers experienced a 3.7% decline in assets in 2022, marking a notable departure from the 5.1% year-on-year growth observed in the previous year. This downtrend primarily stemmed from a contraction in the performance of the life insurance segment, which saw a 4.1% decrease, while general insurers posted a modest 9.7% growth, according to data from the Ministry of Trade and Industry.
Compiled annually by the Singapore Business Review, the Insurance Rankings showcase the leading insurance companies in Singapore based on their assets. The latest rankings, reflecting data from 2022, highlight the performance of these insurers and enable year-on-year comparisons. Among the top 50 list, there were 21 life insurers, 23 general insurers, four life reinsurers, and two general reinsurers.
Despite the overall decline in assets, some insurers managed to maintain their positions and even record growth. Great Eastern Life retained the top spot, despite a slight 1.52% year-on-year shortfall in assets. AIA Singapore held firm in second place, despite an 11.45% decline in assets, while Prudential Singapore secured third place. Notably, Manulife Singapore bucked the trend with a 0.64% year-on-year increase in assets.
However, the industry faced challenges in terms of new business premiums. The direct life insurance sector saw a 4.1% decrease to $6.3 billion in aggregated new business premiums in 2022, with a significant decline in single premium business offsetting modest growth in regular premium business.
Conversely, the general insurance industry witnessed a notable increase in gross premiums, totaling $18.3 billion in 2022, driven by contributions from both offshore and domestic businesses. However, operating profits experienced a decline, primarily due to reduced investment income.
Looking ahead, industry experts anticipate a slower growth trajectory for both the general and life insurance sectors. Economic conditions, rising inflation, and geopolitical uncertainties are expected to dampen overall industry growth in the coming years.
Despite these challenges, opportunities for growth remain, particularly in areas such as health insurance demand, mandatory fire insurance, and rising premiums due to inflation. Insurers are urged to leverage technology, particularly in areas like artificial intelligence, to enhance underwriting, claims assessments, and customer experiences.
Furthermore, addressing protection gaps in mortality and critical illness, improving financial advisory quality, and evolving customer needs will be critical focus areas for insurers. Strategic partnerships, digital transformation, and innovative product offerings will play pivotal roles in navigating the evolving insurance landscape in Singapore.
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