Dennis Tan, president of the Life Insurance Association Singapore (LIA Singapore), has outlined the key priorities and challenges facing the life insurance industry in 2025.
In an interview with Insurance Business Asia, Tan (pictured) shared insights into growth opportunities, regulatory influences, and sustainability priorities, highlighting how the sector is preparing to meet evolving consumer needs and economic challenges.
According to Tan, the life insurance industry’s recovery in 2024 has set a strong foundation for continued growth. By the third quarter, total new business premiums had already reached 88% of the total for the entire previous year.
While external factors – such as inflation, interest rate volatility, and geopolitical uncertainties – present challenges, Tan believes the sector’s financial resilience will support ongoing development.
“Business growth will be primarily driven by rising consumer awareness of the importance of insurance protection, a growing interest in sustainable products and investments, and digital transformation that enables insurers to better meet evolving customer needs,” he told Insurance Business Asia.
Digital transformation also plays a central role, enabling insurers to adapt to customer expectations and deliver more tailored solutions.
“By staying at the forefront of technological developments, the industry is able to evolve alongside the needs of the community and the economy, maintaining its relevance, resilience, and readiness for the future,” Tan said.
Tan pointed to recent regulatory developments, including updates to the Monetary Authority of Singapore’s (MAS) Fair Dealing Guidelines. These revisions extend consumer protection requirements to all financial institutions and products, ensuring higher accountability and transparency.
“This is important, and we as an industry will continue to review and consider the potential opportunities to further enhance our existing efforts to strengthen the culture, quality, accountability, and monitoring of initiatives that put consumers first,” he said.
Additionally, financial literacy initiatives such as the Basic Financial Planning Guide help individuals identify coverage gaps and improve their understanding of insurance products.
Healthcare policies, including subsidies for home-based hospital care and the inclusion of Traditional Chinese Medicine (TCM) treatments under Healthier SG, are expected to influence the sector’s offerings in health insurance.
“With evolving needs, the industry is adapting and identifying opportunities to sharpen our product offerings and work more closely with the government to bring about better health and financial wellbeing for the community,” Tan said.
Tan also discussed the growing importance of environmental, social, and governance (ESG) considerations within the sector.
“There is a growing trend of consumers aligning their investments with their values. Many consumers now prefer insurers that offer products and investment options with strong environmental, social, and governance (ESG) standards,” he said.
He noted that the life insurance industry, as a long-term investor, is well-positioned to support Singapore’s transition to a green economy.
“The industry is increasingly integrating ESG-aligned practices, such as adopting sustainable investment strategies, offering green insurance products, and embedding ESG principles into corporate frameworks,” Tan told Insurance Business Asia.
Narrowing protection gaps remains a top priority for the industry. Tan emphasised the importance of working with stakeholders to ensure that insurance products remain affordable and accessible to Singaporeans.
Leveraging technology will also be critical in helping consumers make informed decisions, with tools like SGFinDex playing a pivotal role.
Sustainability will continue to be a key focus. LIA Singapore’s Sustainability Sub-committee is advancing initiatives in risk management, disclosure, and capacity building to support insurers in aligning with national climate goals.
As the industry looks ahead to 2025, Tan underscored the importance of resilience, innovation, and adaptability in meeting new challenges and opportunities. Through these efforts, the sector aims to strengthen its contribution to Singapore’s economic and social objectives.
“Moving forward, the life insurance sector remains steadfast in its commitment to prioritising customer interests and collaborating with stakeholders across the ecosystem to deliver the best outcomes for Singaporeans,” he said.