Singapore Life Insurers Payout Exceeds $15 Billion in 2026

SINGAPORE – Life insurers in Singapore reported payouts exceeding $15 billion in insurance claims and maturity benefits during the first nine months of 2026. According to the Life Insurance Association (LIA) Singapore, maturity benefits accounted for approximately 74% of total payouts, amounting to $11.2 billion, while healthcare claims reached around $2.2 billion.

Claims under individual life policies for critical illness, death, and total permanent disability totaled $1.7 billion, with critical illness claims alone contributing $756 million. The health insurance claims included $2.1 billion from Integrated Shield Plans (IPs) and their riders, which saw a quarter-on-quarter increase of 6.7%, rising from $695.1 million in the second quarter to $742 million in the third quarter.

The LIA attributed a 15% year-on-year increase in total weighted new business premiums to robust economic conditions, with the total reaching $5.5 billion in the first nine months. In the third quarter, new business premiums alone rose by 4.2% year-on-year to $1.8 billion.

“For some, access to professionally managed funds and financial advice may be part of the appeal.”Wong Sze Keed, President, LIA Singapore

Investment-linked policies (ILPs) have gained significant traction, comprising 46% of the industry's total new business weighted premiums, up from 43% the previous year and 37% in 2024. Premiums from ILPs surged by 22.6% year-on-year to $2.5 billion. Their share of new business reached 49.7% in the third quarter, compared to 42.7% in the first quarter and 44.9% in the second quarter.

Wong Sze Keed, president of LIA Singapore, noted that the increasing share of ILPs indicates a shift in consumer preferences towards savings and investment alongside protection needs. “For some, access to professionally managed funds and financial advice may be part of the appeal,” she explained.

“This is balanced against the implications for coverage and premiums, with the aim of keeping protection meaningful, affordable and accessible over the long term.”Wong Sze Keed, President, LIA Singapore

Furthermore, participating policies also experienced growth, with weighted new business premiums climbing 5.7% year-on-year to $1.2 billion. These plans offer insurance protection while allowing policyholders to receive non-guaranteed bonuses or dividends based on the performance of the insurer’s participating fund. They accounted for 23% of total weighted new business premiums, a slight decrease from 25% in 2025.

As of September, approximately three million individuals in Singapore were covered by IPs. When including other medical plans and riders, around 3.4 million people were covered by individual health insurance. Wong emphasized the industry's commitment to adapting insurance offerings to meet evolving healthcare needs and the developments in medical care. This includes regular reviews of the critical illness framework to ensure that definitions align with the seriousness of illnesses and advancements in treatment.

“This is balanced against the implications for coverage and premiums, with the aim of keeping protection meaningful, affordable, and accessible over the long term,” she added.