Singapore’s direct primary insurance market, excluding reinsurance, was flat in the first quarter of 2026, extending a slowdown that had been building throughout the previous year.
Data from the Monetary Authority of Singapore (MAS), compiled and analysed by (Re)in Asia, showed total general insurance premiums for direct business, including both onshore and offshore, slipped 0.4% year-on-year to S$3.15bn (approx. US$2.46bn).
The year-on-year decline follows progressively weaker % growth through 2025, culminating in a contraction in the fourth quarter.
Despite the softer top-line performance, claims declined faster than premiums, allowing underwriting performance to remain resilient.
Gross claims settled declined 2.7% to S$1.2bn, with underwriting profit declining 1.9% to S$230m. While that underwriting result is slightly below the S$234.5m recorded a year earlier, it remains stronger than most quarterly underwriting outcomes seen between 2022 and 2024.
Claims relief boosts domestic underwriting
Conditions were notably more favourable in the onshore segment.
Onshore direct premiums fell 1% year-on-year to S$1.84bn in Q1 2026, but gross claims settled declined much faster, falling 8.6% to S$546.9m.
The claims decline marked a significant reversal from recent years, when year-on-year claims growth had frequently outpaced premium growth.
The improvement translated directly into stronger underwriting performance. Onshore underwriting profit nearly doubled, rising 96.4% to S$110m from S$56m in the same quarter last year. In effect, insurers generated almost twice as much underwriting profit despite collecting slightly less premium.
Credit insurance recorded the fastest onshore growth in Q1 2026, with premiums jumping 126.9% year-on-year to S$80.1m, a record quarterly high in the dataset.
Aviation hull premiums also rose 58.3% to S$1.9m, although from a relatively small base, as airspace closures triggered by recent Middle East tensions heightened aviation risk concerns and added pressure to hull and war-risk pricing globally.
Among larger classes, health remained the main contributor to absolute growth, with premiums rising 12.6% to S$417.9m, crossing the S$400m mark for the first time. The segment remains under pressure from medical inflation, rising claims costs and demographic ageing. New cost-sharing rules for Integrated Shield Plan (IP) riders took effect on 1 April 2026, lowering rider premiums by about 30% on average as policymakers seek to curb inflation.
Property insurance also posted solid growth, with premiums rising 7.7% to S$208.3m, while motor insurance edged up 1.2% to S$372.7m.
Marine hull, employer’s liability and personal accident also increased, up 4.5%, 3.2% and 0.6%, respectively.
By contrast, engineering insurance recorded the sharpest decline, with premiums falling 52.4% to S$85.3m. The sharp drop was due to an unusually high comparison base in Q1 2025, when premiums reached S$179.3m, the strongest quarter in the dataset.
The fall also comes despite broader regional demand for engineering cover. Allied Market Research has identified Asia-Pacific as the fastest-growing region for engineering insurance, supported by infrastructure development, mature construction markets and large-scale projects, including data centres, transmission lines and nuclear power facilities.
Several other lines fell. These include public and product liability, professional indemnity, cargo, and surety, which are down 23.5%, 13.3%, 10.9%, and 8.6%, respectively.
Offshore profitability weakens
While domestic profitability improved sharply, the offshore market moved in the opposite direction.
Offshore gross direct premiums increased 0.6% year-on-year to S$1.32bn, marking a return to positive growth after year-on-year declines through much of 2025. However, claims rose faster than premiums, with gross claims settled increasing 2.9% to S$653.6m.
As a result, offshore underwriting profit fell 32.8% to S$120m, down from S$178.5m a year earlier.
Motor insurance recorded the strongest offshore growth, with premiums surging 242.2% year-on-year to S$21.9m, albeit from a relatively small base.
Industry forecasts expect motor insurance demand to remain supported by rising EV adoption, although insurers continue to face pressure from higher repair costs and more complex claims. In H1 2025, EVs accounted for 41% of Singapore’s new-vehicle sales, up from 32.4% a year earlier.
Engineering, offshore liability and marine hull also expanded, posting growth of 17.2%, 12.7% and 11.3%, respectively.
The main drag came from property and cargo. Offshore property premiums fell 11.8% year-on-year to S$544m, while cargo declined 10.6% to S$100.1m, as geopolitical tensions and shipping disruptions continued to weigh on global trade and transport activity. Traffic through the Strait of Hormuz remains subdued despite weeks of stop-start negotiations and an extended ceasefire.
