Dennis Tan, president of the Life Insurance Association Singapore (LIA Singapore), has reflected on the life insurance industry’s performance in 2024.
In an interview with Insurance Business Asia, Tan (pictured) discussed the sector’s achievements, ongoing challenges, and strategic priorities for 2025.
Singapore’s life insurance market recorded significant growth in 2024. LIA Singapore’s Q3 results showed weighted new business premiums rose 23.5% year-over-year, reaching $4.3 billion.
This growth was driven by increases in both single and annual premium policies, which rose 20.6% ($1.3 billion) and 24.8% ($3 billion), respectively. Integrated shield plans (ISPs) also played a key role, providing health coverage for approximately 71% of Singapore’s resident population by Q3.
Tan attributed the growth to steady consumer demand for financial security despite broader economic challenges.
“This robust growth highlights sustained customer demand for financial protection, even amidst global macroeconomic challenges such as inflation. It also reflects the trust consumers place in the industry and the importance they place on protecting themselves and their loved ones,” he told Insurance Business Asia.
He added that narrowing protection gaps and managing external economic pressures will remain central to the industry’s efforts this year.
Rising healthcare costs remain a critical concern for insurers and consumers. A recent study projected that Singapore’s medical costs will rise by 12% in 2025, reflecting broader trends in the Asia-Pacific region.
Tan said insurers are responding by exploring innovative pricing models, such as claims-based systems that reward healthy behaviours with reduced premiums.
Additionally, insurers are employing data analytics to better understand cost patterns and optimise medical expenses. By negotiating with private hospitals, companies aim to secure affordable, high-quality care for policyholders.
However, Tan emphasised the need for industry-wide cooperation to address healthcare inflation.
“It is important to mobilise all stakeholders in the health ecosystem to lower medical inflation to enable customers to sustainably access quality healthcare and have quality outcomes. Overservicing, fraud, waste, and abuse must reduce to do so,” he said.
Singapore’s aging population also poses long-term risks. By 2030, one in four Singaporeans will be over the age of 65, increasing demand for products that address longevity risks.
To meet these needs, insurers are introducing solutions such as enhanced retirement plans and long-term coverage options. Preventative health education is also a growing focus, helping consumers manage age-related medical costs while promoting healthier aging.
Protection gaps remain a pressing issue for Singapore’s life insurance industry, particularly among younger demographics.
According to LIA Singapore’s 2022 study, 68% of individuals aged 20 to 24 are underinsured for mortality, while 83% lack sufficient critical illness (CI) coverage. Limited financial resources and a lack of understanding about insurance often deter younger consumers from obtaining adequate protection.
Tan stressed the importance of fostering long-term relationships with younger consumers.
“Build a relationship and journey with [younger consumers] throughout their life stages by offering insurance solutions that can grow with them. This begins with affordable, basic coverage insurance products that accommodates their limited disposable income at the start of their careers,” he said, adding that over time, insurers can offer expanded coverage that aligns with evolving life stages.
Digital solutions are also playing a key role in closing protection gaps. In 2024, LIA Singapore launched an upgraded online insurance calculator, enabling individuals to estimate their protection needs with ease. Tan emphasised that such tools empower consumers to make informed decisions about securing their financial futures.
Technology continues to transform how life insurers engage with their customers. The pandemic accelerated the adoption of telemedicine, which remains popular due to its convenience and accessibility.
Tan noted that telemedicine will likely play a growing role in healthcare delivery as insurers and providers refine its integration into the broader healthcare system.
“Telemedicine has seen a substantial rise in adoption and acceptance since the pandemic, driven by its convenience and accessibility. As technology advances, telemedicine is set to play an increasingly vital role in the healthcare landscape as modern, efficient, and accessible healthcare solution,” he told Insurance Business Asia.
Artificial intelligence (AI) is another area of focus, with insurers increasingly using AI tools to enhance operational efficiency and improve customer experiences. AI applications range from streamlining claims processes to delivering personalised advice through digital platforms.
However, Tan emphasised the importance of ethical AI practices, particularly regarding transparency, accountability, and consumer trust.
“As AI continues to evolve, we can anticipate deeper integrations and broader applications of AI in the future. Life insurers are committed to ensuring that the use of AI is consistent with ethical principles and values, such as fairness, transparency, accountability, and respect for privacy,” he said.
