Singapore's Private Health Insurance Market to Grow to 17.3 by 2029

The personal accident and health (PA&H) insurance market in Singapore is projected to expand at a cumulative annual growth rate (CAGR) of 6.6%, from $6.2 billion (S$8.5 billion) in 2024 to $8.6 billion (S$11.7 billion) by 2029. According to GlobalData.The increasing demand for private health insurance and premium adjustments are predicted to push the segment's share of the overall insurance market from 15.3% in 2024 to 17.3% by 2029.

“Singapore’s PA&H insurance has experienced a strong growth in 2024, bolstered by heightened health and financial awareness that spurred demand for health insurance products,” Aarti Sharma, Insurance analyst at GlobalData, said in a report.

In addition to Singapore's MediShield Life program, which offers basic health insurance, private insurers' integrated shield plans (IPs) and riders have been significant contributors. About 2.9 million people, or 71% of Singapore's population, were covered by IPs as of mid-2024. In the first half of 2024, new business rates for individual health insurance increased by 7.1% annually.

Singapore's Ministry of Health said in October 2024 that MediShield premiums would be ramped up by 35% starting in April 2025 to account for more coverage, higher claim limits, and adjustments to co-insurance and deductibles.

Market expansion is further supported by demographic changes, such as an aging population.Nearly 20% of Singaporeans were 65 years of age or older as of June 2024. Growth is also being aided by an increase in tourism. In October 2024, foreign visitor visits increased 16.7% year over year, increasing demand for travel insurance, which frequently covers personal accident coverage. The PA&H insurance market in Singapore has a bright future thanks to growing premiums, shifting demographics, and more tourists.