Singapore’s insurance and finance sector fell by 0.9% in the first quarter of 2023 compared to the same quarter last year, according to the latest report from the country’s Ministry of Trade and Industry.

According to the report, the decline follows the 0.3% contraction in the last quarter, which comes after declines in both the banking and insurance segments more than offset expansions in other auxiliary activities and fund management segments.

The report also revealed that the insurance segment overall shrank because of the weak performance of the life insurance sector. As already disclosed by the country’s Life Insurance Association (LIA), single-premium products took a nosedive as it recorded 46.3% lower sales on a quarter-on-quarter basis.

It’s worth noting that this small decline comes amidst a recent outlook by GlobalData that forecast solid growth for the property insurance line up until 2027. In particular, the sector is projected to grow at a compound annual growth rate (CAGR) of 8.7%.

Despite the shrinkage, the ministry remained bullish on the country’s economic prospects overall, with projections of growth in the 0.5% to 2.5% range for 2023.

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