Singapore premiums rise sharply as health costs bite harder

Despite the rise in insurance costs, overall price pressures remain contained. 

Singapore’s 13.3% year-on-year rise in health insurance premiums follows the phased hike in MediShield Life premiums, which is part of an ongoing enhancement of coverage, according to UOB Macro Note.

The inflationary impact of higher insurance premiums has become more pronounced following the rebasing of Singapore’s Consumer Price Index. Furthermore, the increase in premiums drove Singapore’s month-on-month core inflation, which rose 0.5% in April.

The weight of health insurance in the 2024-based CPI almost tripled to 2.25% from 0.82% in the 2019-based index. 
Despite the rise in insurance costs, overall price pressures remain contained.