Budget Direct rolls out commercial vehicle coverage for Singapore businesses

Product launched amid market growth

Budget Direct rolls out commercial vehicle coverage for Singapore businesses

Motor & Fleet

By Roxanne Libatique

Budget Direct Insurance has announced the rollout of a new commercial vehicle insurance product in Singapore.

The offering is targeted at businesses that depend on vehicles for daily operations, including small business owners, contractors, and tradespeople such as electricians and plumbers.

Commercial vehicle insurance

The product provides both comprehensive and third-party coverage for light goods vehicles like vans, lorries, and trucks.

Customers can tailor their policies with optional features, including roadside assistance, a no-claims discount protector, and the option to select their own repair workshop.

Simon Birch, Budget Direct Insurance’s CEO, emphasised the significance of the new product.

“Businesses rely on their vehicles as critical assets, and our goal is to provide them with affordable, reliable protection while maintaining the high standards our customers have come to expect. This launch is a testament to our dedication to meeting the evolving needs of businesses in Singapore,” he said.

Direct-to-consumer model

The insurer operates using a direct-to-consumer model, bypassing intermediaries to reduce costs. This approach allows Budget Direct Insurance to offer competitive premiums without sacrificing coverage options.

The company has been present in Singapore since 2016, where it offers various policies, including car, motorcycle, and travel insurance. It later expanded into higher-risk car insurance to serve a broader market.

Growth predicted for Singapore’s insurance industry 

The launch of a new insurance offering in Singapore comes as the country’s general insurance market is projected to reach $8.1 billion in gross written premiums (GWP) by 2029, growing from $6 billion in 2024. According to GlobalData, this represents a compound annual growth rate (CAGR) of 6.2%.

Contributing factors include an economic rebound, rising healthcare expenses, and increased premiums across multiple insurance segments.

In 2024, motor insurance was expected to grow by 9.4%, driven by an increase in vehicle registrations, which rose 30% in the first 10 months of 2024 compared to the same period in 2023. Electric vehicle (EV) adoption has also played a key role, bolstered by Singapore’s goal to phase out internal combustion engine vehicles by 2040.

Motor insurance is projected to achieve a CAGR of 4.1% through 2029, reflecting consistent demand and the shift toward EVs. The construction sector and increasing demand for health insurance are also expected to sustain broader market expansion.

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