Singapore’s property insurance to earn S$1.1b in 2023

On a year-on-year basis, its gross written premiums would grow by 7.6%.

The gross written premiums of property insurers in Singapore are forecast to climb 7.6% to S$1.1b, according to a report by GlobalData.

“Singapore property insurers are expected to remain profitable in 2023 due to disciplined underwriting, adequate reinsurance coverage, and growing premiums from compulsory fire insurance,” GlobalData said.

It was estimated that insurance among properties accumulated S$1b in 2022. This year would mark the fifth consecutive year of growth.

Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData said controlled underwriting and a diverse portfolio would boost the property insurance sector in Singapore.

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“The top 10 property insurers in Singapore accounted for 67% of the property insurance market in 2021. They generated on average, 41% of their business from property insurance, 19% from liability insurance, 14% from motor, and 14% from non-life PA&H insurance. Such diversification helps in managing risk arising due to loss in any single line of business,” Sahoo added.

GlobalData’s report also predicted growth to continue until 2027, which is seen to accumulate S$ 1.5b in gross written premiums. If realised, this entails 8.7% growth from the profits recorded last year.

“The growth of property insurance in Singapore is driven by fire insurance, which is compulsory when purchasing houses from the Housing and Development Board (HDB) and taking home loans. According to HDB, more than 75% of the Singapore resident population lives in flats sold by HDB.” added GlobalData.