UPDATED: May 30
Singapore’s life insurance sector distributed S$5.08 billion to individual policyholders in the three months ended March 31, 2026 (Q1 2026) – the largest first-quarter disbursement recorded since 2021 – according to data released by the Life Insurance Association, Singapore (LIA Singapore). The figure covers two broad categories. The first is protection-related payouts: S$555 million disbursed across 5,507 claims tied to critical illness, death, and total permanent disability under individual life policies. The second is maturity payouts: S$4.52 billion released to holders of the 87,402 policies that reached their end dates during the quarter.
Health insurance claims under individual policies added S$712 million to the total, with the bulk going to holders of Integrated Shield Plans (IP) and IP riders. For context, the full-year 2025 health claims figure stood at S$2.87 billion, placing the Q1 2026 number on a pace to exceed that if current trends hold. “Amid continual global uncertainty, we’re seeing individuals and families continue to take deliberate steps to strengthen their financial resilience. The higher level of claims payouts this quarter, alongside sustained growth in new business, reflects both the industry’s role in providing financial support at critical moments and a growing recognition of the importance of protection,” said Wong Sze Keed, president of LIA Singapore.
Across the board, total weighted new business premiums for the quarter came in at S$1.69 billion, a 14.3% rise from S$1.48 billion recorded in Q1 2025 – an increase of roughly S$212 million. Regular premium policies held the largest share at S$1.23 billion, up 7.8% year-on-year. These are plans under which policyholders make ongoing contributions over time, as opposed to a single upfront payment. Single premium policies moved in the opposite direction from recent quarters, posting a 36.5% year-on-year jump to S$463.3 million. Take-up was also 1.2% above the Q4 2025 figure.
LIA Singapore noted that early-year purchasing patterns may be a factor, with individuals using the start of the calendar year to reassess their financial positions while liquidity tends to be higher. Investment-linked policies (ILPs) held their position as the largest product category, at S$723 million or 43% of total weighted new business premiums – a gain of 8.7% from Q1 2025. Participating policies, under which policyholders receive a share of the insurer’s declared bonuses or dividends, rose 35.6% year-on-year to S$446 million, representing roughly 26% of the quarterly total.
The number of Singapore residents holding an Integrated Shield Plan now exceeds seven in 10, following a quarter in which roughly 33,000 additional residents took up IPs or IP riders. The Q1 2026 enrolment activity preceded regulatory changes to IP riders that came into force on April 1, 2026. New business premiums for individual health policies totalled S$61.2 million in Q1 2026, up S$20.6 million from the same period a year earlier. In-force business premiums across IPs, IP riders, and other medical plans – including non-IP plans held by non-residents – rose by approximately S$395 million compared to Q1 2025. “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. We’re also seeing existing policyholders review their health insurance more carefully, taking a deliberate and balanced approach to ensure that they secure the coverage they need when the unexpected happens, while being mindful of long-term sustainability,” Wong said.
Human advisers continued to dominate how new policies were sold. FA representatives and tied representatives together facilitated 241,629 new policies in Q1 2026, or 78.3% of all new policies written in the quarter. Their combined share of total sum assured reached 67.6% of S$34.2 billion – up from S$33.6 billion in Q1 2025. Breaking down weighted premium contributions by channel: bank representatives led at S$602 million, or 35.6% of the S$1.692 billion quarterly total. FA representatives followed at S$583 million (34.4%), and tied representatives contributed S$453 million (26.8%). Online direct channels accounted for 1.2% of premiums by value but 8.3% of new policies by count, a gap that points to their use for lower-premium, simpler transactions.
The industry’s total workforce stood at 9,495 employees as of March 31, 2026. LIA Singapore said member companies have been redirecting resources toward staff training and role redesign, with artificial intelligence among the technologies being incorporated into workflows spanning policy applications through to claims processing.
In early April 2026, LIA Singapore and its member companies, working alongside the Singapore College of Insurance (SCI), held the first in a series of financial literacy workshops targeting Generation Z students, beginning at ITE College Central. Further sessions are being planned at other institutions across the island, with the association inviting Institutes of Higher Learning to contact them about scheduling workshops on campus or at member company offices.
“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. As healthcare needs and financial priorities evolve, our role is to empower individuals with the knowledge, tools, and solutions to make confident decisions – so they can navigate life’s uncertainties with greater clarity and be better prepared for themselves and their loved ones at every stage,” Wong said.
