Singapore insurance stays buyer-friendly despite motor hikes

The report says prices are flat to moderately lower across most major lines.

The Singapore insurance market remains highly competitive and buyer-friendly in the third quarter of 2025, according to the latest Global Insurance Market Insights from Aon. 

Abundant capacity and aggressive competition amongst insurers are driving flat to moderately decreasing prices across most major lines. 

Underwriting remains disciplined and data-driven, with insurers favouring clients who demonstrate robust risk management and clear claims histories. 

Whilst coverage options are expanding for preferred risks, high-loss or volatile segments are seeing more selective tightening.

The primary exception to this softening trend is the automobile insurance segment. Insurers continue to face underwriting losses following a difficult 2024 and a loss-making first quarter in 2025. 

This has led to material rate increases and upward pressure on deductibles, even for private vehicle owners with clean records, according to the report.

Notably, the industry is increasingly focused on electric vehicles (EVs), which accounted for approximately 41% of new car sales in the first half of 2025. Major insurers have responded by launching specific policies tailored to the unique risks of the growing EV fleet.

Cyber and Directors & Officers (D&O) insurance are currently amongst the most favorable lines for buyers. The cyber market is seeing pricing decreases and a willingness from insurers to broaden coverage, though the rate of reduction has slowed recently for primary layers. 

Property insurance is also softening as competition grows, though global trade tensions and the rise of artificial intelligence have created concerns regarding supply chain inflation and cyber-related physical damage.

Casualty and liability lines remain stable for preferred risks, but capacity is tightening for niche sectors such as life sciences, autonomous vehicles, and battery energy storage systems. 

Across all sectors, limits are generally holding steady or increasing as insurers look to deploy capital. 

Whilst the current environment benefits the majority of corporate buyers, those in higher-risk industries or with poor claims experience may still face rate hikes as underwriters continue to prioritise risk differentiation, the report said.