2025 salary hikes expected in Singapore's insurance sector

Those in lower-value administrative functions may experience a more modest increase of 10%-15%.

For job switchers in Singapore’s insurance sector, salary increases are projected between 15% and 20% this coming 2025, with niche technical roles potentially seeing increases of up to 50%, Randstad Singapore revealed in its latest report.

Positions in lower-value administrative functions may experience more modest increments of 10% to 15%, Randstad’s 2025 Market Outlook & Salary Guide Report showed.

As the insurance sector adapts to these changes, professionals with skills in operational excellence, digital transformation, AI, and sustainable investing will be well-positioned for opportunities. 

Those with expertise in underwriting, sales consulting, and case management for high-net-worth individuals, especially in family offices, will also be in demand.

The insurance sector in Singapore is set for notable changes in 2025, driven by technological innovation, regulatory shifts, and market trends. These developments are expected to impact the job market significantly.

Offshoring of back-office functions to nearby countries is expected to increase in 2025, enabling Singapore-based teams to focus on higher-value tasks. 

This trend is creating a demand for professionals with expertise in operational excellence, process improvement, and change management. Many of these roles will be full-time, with a growing number of contract positions for specialists in transition projects.

Mergers and acquisitions have been prominent, with HSBC acquiring AXA Singapore in 2023 and Aviva exiting its joint venture with SingLife in 2024. 

This trend reflects the challenges of operating a capital-intensive business in a small market. Insurers are responding by offering new products, particularly for high-net-worth individuals, as Singapore becomes an increasingly significant wealth hub, with approximately 2,000 family offices by the end of 2024, the report said.

Overall salary expectation
Nearly half (49%) of employers in Singapore plan to expand their teams in 2025, whilst 40% intend to maintain their current workforce. This indicates a positive outlook for business sentiment, as companies regain confidence in growth. 

The survey highlights that 45% of employers anticipate the highest hiring activity in sales and business development, with technology roles remaining a focus. 23% of employers plan to prioritise tech talent acquisition, whilst 13% aim to invest in digital transformation and AI professionals.

However, challenges persist, with 66% of employers citing a shortage of candidates with the necessary skills as their main hiring obstacle, and 38% pointing to fierce competition for talent. 

To address this, 38% of organisations are preparing to boost budgets for technical roles, and 30% will focus on promoting internal employees. Additionally, 43% of companies are expecting salary increases of 3% to 5% in 2025.