BMI View: Singapore has a developed insurance market but we highlight that organic growth potentialexists in both the life and non-life sector. The non-life sector is dominated by the offshore coverage for risksoutside the city state. We highlight that economic slowdown in China and some regional countries poses anegative risks but higher levels of ASEAN trade will continue to bode well for the Singapore economy andthe insurance industry. The non-life sector growth will, as such, outpace life segment growth. Furthermore,we believe that the life segment will continue to achieve steady growth through the forecast period, thanksto innovation by the insurers in a wealthy country with a structurally high rate of savings.
Latest Updates And Forecasts
In Q317, we have made minor adjustments to our projections for life premiums. Premiums should growsteadily through the forecast period thanks to innovation (in terms of product development anddistribution) by the insurance companies - in a country where life insurance plays a central role in theorganised savings landscape. Nevertheless, the market remains very competitive. We remain of the viewthat some of the international life companies will reconsider their commitment to the Singapore marketover the course of the forecast period. Life sector premiums will amount to SGD31.3bn in 2017,representing 3.8% y-o-y growth.