Singapore investment-linked products grab 44% of new life business

LIA Singapore logged $5.2b weighted premiums in 2025 up 11.3% on 2024.

Investment-linked products (ILPs) made up the largest share of new business for Singapore’s life insurance industry in 2025, accounting for 44% of total weighted new business premiums.

Participating (par) products contributed 24%, whilst non-participating (non-par) products made up 32%.

The Life Insurance Association, Singapore (LIA Singapore) reported that total weighted new business premiums reached $5.2b (S$6.53b) for the full year, up 11.3% from 2024.

Growth was mainly driven by higher annual premium sales. In the fourth quarter alone, new business premiums rose 13.0% compared to the same period a year earlier.

ILPs recorded 27.8% year-on-year growth, increasing from $1,779.9m (S$2,253m) in 2024 to $2,275.2m (S$2,880m) in 2025.

Demand was supported by consumers seeking both insurance protection and investment returns through market-linked funds.

Regular-premium ILPs remained popular as they allow policyholders to invest over time and manage market volatility.

Participating products grew 9.6% year-on-year, rising from $1,127.3m (S$1,427m) to $1,235.6m (S$1,564m). In contrast, non-participating products saw a 4.8% decline in contributions.

Financial adviser representatives generated 35.7% of weighted new business premiums and accounted for 39.5% of policies sold.

Bank representatives contributed 32.9% of weighted premiums but 10.7% of policies. Tied representatives made up 28.2% of weighted premiums and 37.2% of policies.

Online direct channels accounted for 1.2% of weighted premiums and 10.0% of policies, whilst other products sold without intermediaries contributed 1.9% of premiums and 2.5% of policies.

As at 31 December 2025, insurers holding “Normal” licences contributed 99% of total weighted new business premiums, whilst insurers operating under “Defined Market Segments” licences made up the remaining 1% for the year to date fourth quarter of 2025.

Employment in the life insurance sector fell 1.1% year-on-year to 9,411 as at 31 December 2025.

Over the same period, 12,389 representatives held exclusive contracts with companies operating tied-agency forces.

($1.00 = S$1.26)