According to GlobalData, resumption of economic activities, successful Covid-19 vaccination rollout programmes, and relaxation on travel restrictions are expected to support the general insurance industry in Singapore.
Manogna Vangari, Insurance Analyst at GlobalData, commented: “The Singaporean economy is expected to pose a strong recovery in 2021 and grow by seven per cent following 5.4 per cent decline in 2020. The general insurance industry is also expected to return to stable growth in 2021, after a flat growth of 0.2 per cent in 2020, in line with the economic recovery.”
Economic recovery driving growth
Personal accident and health (PA&H) and property insurance were the second and third-largest general insurance segments with a share of 19 per cent, and 18.4 per cent, respectively, in 2020. PA&H insurance provided by general insurers is expected to grow by 3.4 per cent in 2021, and 3.8 per cent in 2022.
Vangari concluded: “Economic recovery and gradual opening of international travel are expected to revive the demand for general insurance in 2021. The industry’s growth momentum will consistently pick up over the next five years aided by product innovation, digitalisation, and infrastructure development projects.”