Soaring insurance costs signal pressure on 2026 premiums in Singapore

Healthcare inflation rose to 4.0% year on year, up from 1.4% in September.

Health insurance costs in Singapore have become a key driver to the country’s rising inflation figure, reaching its nine-month high in October.

Healthcare inflation rose to 4.0% year on year, up from 1.4% in September, pushed by a 14.5% increase in health insurance costs.

This was the sharpest rise on record, according to a CGS International report. Analysts warn that this trend signals continued upward pressure on premiums heading into 2026.

Industry adviser Willis Towers Watson said insurers are likely to continue adjusting premiums as they manage high claims ratios, greater use of advanced diagnostics and increasing manpower costs. 

These factors are expected to keep health-related insurance expenses elevated next year.

The rise in healthcare costs contributed to Singapore’s overall inflation climb in October. 

Core inflation reached 1.2% year on year, up from 0.4% in September, whilst headline inflation rose to 1.2% from 0.7%. 

Higher services, food and retail prices contributed to the increase, whilst private transport costs also pushed headline inflation higher.

Looking ahead, analysts expect inflation to edge up further in 2026, with headline CPI forecast to rise by 1.5%.

The Monetary Authority of Singapore noted that risks remain uneven, with geopolitical tensions potentially lifting import prices, whilst weak global demand could soften core inflation.