The top insurance companies in Singapore are expected to bring in higher revenue in the coming years thanks to digital distribution and increased customisation, a study has revealed.
The increased adoption of digital distribution and customisation will allow insurers to enhance their offerings as COVID-19 restrictions ease and global economic activity recovers, according to a report by data and analytics firm GlobalData.
The report listed the five largest insurers in Singapore – Great Eastern, Manulife, Prudential, AIA, and Income. The insurance industry is dominated by these five, which accounted for a 75.8% share of GWP in 2021, while the top 10 players had a share of 89.2%. The market share of the top five and top 10 insurers increased by 3.2 percentage points and 0.6 percentage points, respectively, in 2021, compared to 2020.
Great Eastern saw its market share increase over the past three years, with 19% in 2019, 23.3% in 2020, and 25.7% in 2021.
“Prompt scaling of technology and increased adoption of digitalisation enabled insurers to create new opportunities and improve customer experience,” said Manogna Vangari, insurance analyst at GlobalData. “To build a resilient business, Singapore insurers strengthened their distribution channels by adding digital tools to their core channels like agencies, financial advisers, and bancassurance.”
The report also highlighted insurers’ various partnerships, which help them make their offerings more customer-centric and drive growth.
In April, Manulife and DBS Bank partnered to launch low-cost, customisable protection products, such as ProtectFirst, for young Singaporeans. Prudential announced partnerships with Smarter Health and Privé Technologies in November 2021 to expand its health and wealth offerings on its Pulse mobile app.
“Singaporean insurers are expected to continue their profitable growth over the coming years, driven by shift towards digital initiatives and customisation,” Manogna said.
