Singapore life insurers pay out more than S$15 billion in first 9 months of 2026

[SINGAPORE] Life insurers in Singapore paid out more than S$15 billion in insurance claims and maturity benefits in the first nine months of 2026. Policy maturities accounted for the bulk of payouts, followed by claims for healthcare and other forms of insurance protection.

Maturity benefits comprised about 74 per cent of total payouts, or S$11.2 billion, while claims under individual health policies amounted to some S$2.2 billion, according to figures released by the Life Insurance Association of Singapore (LIA) on Thursday (Nov 12).

A further S$1.7 billion was paid out under individual life policies for critical illness, death and total permanent disability. Critical illness claims alone amounted to S$756 million.

Of the S$2.2 billion in health insurance claims, S$2.1 billion came from Integrated Shield Plans (IPs) and their riders, with IP riders accounting for 24.1 per cent. The remaining S$115.2 million was paid under other medical plans and riders.

Claims under IPs and their riders rose 6.7 per cent quarter on quarter, from S$695.1 million in Q2 to S$742 million in Q3.

Investment-linked policies gain share

Separately, the industry recorded a 15 per cent year-on-year increase in total weighted new business premiums in the first nine months of 2026 to S$5.5 billion, a rise that LIA attributed to strong economic momentum. In Q3 alone, weighted new business premiums rose 4.2 per cent year on year to S$1.8 billion.

THE BUSINESS TIMES INSIGHTS

Powering Asean's Future 2026

Find out how enterprises are navigating power constraints and sustainability targets

ACCESS THE INSIGHTS

Investment-linked policies (ILPs) accounted for an increasingly large share of new business. New business weighted premiums from ILPs rose 22.6 per cent year on year to S$2.5 billion in the first nine months. 

ILPs made up 46 per cent of the industry’s total, up from 43 per cent in the same period the prior year and 37 per cent in 2024. Their share reached 49.7 per cent in Q3, compared with 42.7 per cent in Q1 and 44.9 per cent in Q2.

LIA Singapore president Wong Sze Keed said the growing share of ILPs suggests that consumers are placing greater emphasis on savings and investment priorities, alongside meeting their protection needs.

SEE ALSO

MAS moves to spur infrastructure investments by easing capital requirements for insurers

Insurance pullback coming as climate risk grows and ‘entire regions’ could get uninsurable: report

High claims, low margins: How sustainable is Singapore’s health insurance?

“For some, access to professionally managed funds and financial advice may be part of the appeal,” she said.

The industry is working closely with the Monetary Authority of Singapore to strengthen disclosures through product highlight sheets and help customers better understand the overall costs and benefits of ILPs, she added. 

Participating policies also recorded growth, with weighted new business premiums rising 5.7 per cent year on year to S$1.2 billion. These plans provide insurance protection, while policyholders may receive non-guaranteed bonuses or dividends depending on the performance of the insurer’s participating fund.

They accounted for 23 per cent of total weighted new business premiums, down from 25 per cent a year earlier.

As at September, about three million people in Singapore were covered by IPs. Including other medical plans and riders, around 3.4 million people were covered by individual health insurance.

Wong said the industry will continue reviewing how insurance responds to evolving healthcare needs and developments in medical care, including through regular reviews of the critical illness framework and how definitions take into account the seriousness of an illness and developments in its treatment.

“This is balanced against the implications for coverage and premiums, with the aim of keeping protection meaningful, affordable and accessible over the long term,” she said.