The Life Insurance Association, Singapore (LIA Singapore) released its first-quarter 2026 (Q1 2026) industry figures on May 13, showing total claims, health payouts, and maturity disbursements of S$5.79 billion across both individual life and health policy categories. The results point to two concurrent dynamics: a higher volume of claims being settled – partly a function of a maturing in-force book and rising healthcare costs – alongside a sustained increase in consumers buying new coverage and savings products, even as the broader economic environment remains uncertain.
Individual life and health policyholders received a combined S$5.08 billion in Q1 2026, a figure LIA Singapore noted was the largest for any opening quarter since 2021. The total comprises S$555 million distributed across 5,507 individual life claims — spanning critical illness, death, and total permanent disability — and S$4.52 billion from 87,402 policies that reached their maturity dates within the three-month period. Health-related disbursements added a further S$712 million, with the bulk going to holders of Integrated Shield Plans (IPs) and accompanying IP riders. These plans, which wrap around MediShield Life to extend hospitalisation coverage, have become the primary vehicle through which policyholders offset inpatient costs. Over the course of 2025, the industry paid out S$2.87 billion in health claims in total.
The scale of health payouts reflects a cost environment that shows little sign of moderating. According to WTW's 2026 Global Medical Trends Survey, published in November 2025, Singapore's medical inflation rate is forecast at 16.9% for 2026 — the highest reading among major Asia Pacific markets and well above the regional composite of 14%. WTW identified the proliferation of new medical technologies (cited by 77% of surveyed insurers), rising pharmaceutical costs, and insufficient cost-sharing mechanisms as the dominant structural pressures. Singapore-specific factors include a shortage of healthcare workers pushing up salaries and operating costs, alongside heavier utilisation tied to improved early detection of conditions such as cancer and diabetes.
Weighted new business premiums for the quarter totalled S$1.67 billion, a 12.9% increase over the S$1.48 billion recorded in Q1 2025 — a gain of roughly S$191 million year on year. Annual premium policies held the top position by volume at S$1.21 billion, up 5.9% from the same period last year. Single premium policies, which require one upfront payment rather than recurring contributions, grew at a faster rate: weighted premiums from this segment reached S$463.3 million, a 36.5% year-on-year jump, and were also 1.2% above the Q4 2025 level. LIA Singapore suggested the January-to-March window tends to see stronger single premium activity as individuals with funds available at year-start turn attention to reviewing financial plans.
Investment-linked policies (ILPs) accounted for the largest slice of weighted new business premiums at 43%, or S$713 million, rising 7.2% from Q1 2025. Participating policies – products that offer a share of insurer investment returns in the form of bonuses or dividends – recorded a 35.6% year-on-year gain, totalling S$446 million and representing approximately 27% of the total premium mix. The combined weight of ILPs and participating policies suggests that savings and investment considerations are running parallel to pure protection in consumer purchasing decisions. Longer-term, GlobalData’s insurance forecasting database projects the Singapore life market to reach S$83.9 billion in gross written premiums by 2030, up from an estimated S$64.6 billion in 2026 – a compound annual growth rate of 6.8%. The firm estimated 2025 growth at 8.3%, with whole life, endowment, and personal accident and health products collectively representing 92.1% of GWP for that year.
Around 33,000 Singapore Residents added IP or IP rider coverage in Q1 2026. LIA Singapore noted the timing coincided with regulatory changes to IP riders that were implemented on April 1, 2026, though it did not attribute enrolment growth exclusively to that factor. The proportion of Singapore Residents now holding an IP has crossed the seven-in-ten threshold, according to the association. New business premiums for individual health policies came to S$61.2 million in Q1 2026, a S$20.6 million increase over Q1 2025.
In-force premiums across IPs, IP riders, and other medical plans – the last category covering primarily non-IP products purchased by non-residents – rose by approximately S$395 million relative to the first quarter of last year. “The strong uptake in Integrated Shield Plans and IP riders reflects growing awareness of the role that health insurance plays in long-term financial planning. As an industry, we have intensified efforts to support consumers through education, helping them make informed decisions based on their healthcare needs and financial circumstances now and into the future,” said Wong Sze Keed, President of LIA Singapore.
Tied representatives and FA representatives combined to handle 241,629 new policies in Q1 2026, equal to 78.3% of all policies written during the quarter. Measured by total sum assured, the two advisory categories jointly accounted for 67.6% of S$34.2 billion – compared to S$33.6 billion in the same quarter of 2025. When broken down by weighted premiums, bank representatives led the distribution table at 35.5%, generating S$593 million in new business. FA representatives followed at 34.4% (S$576 million) and tied representatives at 26.8% (S$447 million). Online direct channels brought in 1.2% of weighted premiums but a comparatively higher 8.3% share of policies by count, reflecting the lower average premium of digitally purchased products. Tied representatives led on policy count at 40.0%, with FA representatives at 38.3%. By total sum assured, FA representatives held the highest share at 38.7%, followed by tied representatives at 28.9% and bank representatives at 25.9%.
The sector employed 9,495 people as of March 31, 2026, a figure largely unchanged from the prior year. Member companies have been revising job roles and investing in staff training to accommodate greater use of artificial intelligence across functions ranging from underwriting and policy issuance to claims processing. LIA Singapore framed the effort as a deliberate approach to retaining the existing workforce rather than replacing it through automation.
LIA Singapore and its member companies, working with the Singapore College of Insurance (SCI), ran a financial literacy session for students at ITE College Central in early April 2026 – the first of what the association described as a planned series of voluntary workshops targeting younger Singaporeans. “Looking ahead, the life insurance industry remains anchored in a consumer-centric approach to everything we do. This means continuing to enhance consumer understanding and financial literacy, innovating purposefully in alignment with evolving consumer needs, and working closely with stakeholders to ensure a sustainable and accessible insurance ecosystem,” Wong said. The association said it is inviting Institutes of Higher Learning to contact LIA Singapore to schedule sessions, which can be hosted either on institutional campuses or at member company offices.
