Singapore Motor Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 2.00 % |
| Market Concentration | Medium |
Major Players.webp "Singapore Motor Insurance Market Major Players")
*Disclaimer: Major Players sorted in no particular order |
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Singapore Motor Insurance Market Analysis
Singapore Motor Insurance Market has generated a revenue of USD 860 million in the current year and is poised to register a CAGR of 2% for the forecast period. In the previous year, the gross domestic product (GDP) of the finance and insurance industry in Singapore amounted to around 73 billion Singapore dollars.
The COVID-19 pandemic had a significant impact on various sectors, including the motor insurance market in Singapore. During the pandemic, lockdown measures, travel restrictions, and work-from-home arrangements led to a significant decrease in the usage of vehicles. With fewer cars on the road, there was a corresponding decline in the number of motor insurance claims. This resulted in a decline in premiums for motor insurance providers. In response to the pandemic, regulatory authorities may have introduced temporary measures or policy adjustments to support policyholders and insurers. These changes could include extensions of insurance coverage, relaxed underwriting requirements, or the implementation of relief measures to alleviate financial burdens on policyholders.
Singapore intends to develop an insurance hub in Asia. Among different insurance segments in Singapore, motor insurance is one of the largest segments. Various Insurance Companies started working closely with key partners and stakeholders like the Singapore Road Safety Council and Traffic Police on the way to improving education and awareness for road users in Singapore. Sales of motor vehicles have improved post covid, reflecting the improvement in customer demand, which is expected to support the growth in motor insurers' premiums in the short term. The total of insurance companies has been increasing, especially in the last two years, with confined and direct insurers leading the industry.
Additionally, electric vehicle sales grew over the last 2 years, which has contributed to the high demand for motor insurance. In addition, the surge in environmental consciousness among the customers of Singapore will enable the market of EV insurance. This driving demand for electric vehicles is expected to surge the demand for new motor vehicle insurance policies, thus driving the development of the motor insurance market in Singapore.
Singapore Motor Insurance Market Trends
Motor insurance has the Highest Market Share in General Insurance
The star-studded performance of the motor insurance segment testifies to the effectiveness of government strategy. The division attained underwriting profits to reverse the underwriting losses reported in the previous year. The demand for motor vehicles in Singapore is significantly boosted due to the rise in urbanization and increase in the per capita income of customers. There is an expansion in sales of motor vehicles in Singapore because of the availability of motor vehicles for sale, which is because the automobile industry is supported by multiple factors such as labor accessibility, R&D efforts, geographic advantage, and government support. This is attributed to the automation and digital innovations executed by companies, and the insurance association works together to reduce operating costs, improve efficiency, and ease the incidence of fraudulent claims.
Insurtech is Driving the Market
Insurance has been a hard nut to crack, particularly in the city-state. Singapore is home to one of the most saturated insurance markets globally - measured by gross written premiums (GWP) as a percentage of per-capita gross domestic product (GDP). A report presented incumbents accounted for more than 45 percent of GWP, and annual growth was at 1 percent for the general insurance market. Additionally, traditional distribution channels through agents and financial advisors remain the preferred avenue for local customers to purchase their policies. In a mature market with incumbents upholding a strong foothold,
Insurtech firms in Singapore have been dealt a challenging hand. Though, they have played it well. Insurtech in Singapore is driving the motor insurance market. There are more than 80 Insurtech registered with the Singapore Fintech Association. And there has been no shortage of investment in the sector. According to BCG, funding for local Insurtech firms accounted for 29 percent of total fintech funding in 2021. Several Insurtech in Singapore are looking to change this narrative with their digital offerings. Bolttech is one such example. Under Richard Li's Pacific Century Group (PCG), the Singapore-based Insurtech firm claims it operates the world's major online insurance exchange, having transacted USD 5 billion in premiums, with over 5,000 products and 150 insurance providers on its platform. Leveraging PCG's strength in the insurance space - FWD Insurance is among the investment group's portfolio - Boltech was able to serve over 7.7 million customers within a year of its launch in 2020. It recently resulted in a USD 180 million Series A round that saw the company valued at over USD 1 billion. While Bolttech's impressive numbers offer local Insurtech a hint of the global Insurtech market size they could target, we should not discount the fact being backed by a corporate powerhouse like PCG did significantly step up Bolttech's rise. Hence, it is clear that Insurtechs have a role to play within the Singapore Motor insurance industry.
Singapore Motor Insurance Industry Overview
The Singapore Motor Insurance Market is moderately saturated in nature in terms of market share. Some of the major key players operating currently dominate the market. The market is likely to grow during the forecast period due to the rise in sales of motor vehicles and many other factors that are driving the market. Some of the major players in the market are Msig Insurance (Singapore) Pte. Ltd., Tokio Marine Life Insurance Singapore Ltd., The Great Eastern Life Assurance Company Limited, Aviva Ltd, and Liberty Insurance Pte Ltd.
Singapore Motor Insurance Market Leaders
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MSIG INSURANCE (SINGAPORE) PTE. LTD.
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TOKIO MARINE LIFE INSURANCE SINGAPORE LTD.
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THE GREAT EASTERN LIFE ASSURANCE COMPANY LIMITED
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AVIVA LTD
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LIBERTY INSURANCE PTE LTD
*Disclaimer: Major Players sorted in no particular order
Singapore Motor Insurance Market News
- September 2022: MSIG Insurance ("MSIG") and Klook will only offer TravelCare insurance as an add-on when Singaporean clients book travel-related activities and services via Klook's mobile app or website. This collaboration is made possible through a distribution relationship.
- March 2022: AXA Singapore ceased to offer Motor and General Insurance Businesses. AXA Singapore operations are to be merged with the existing HDFC Life Singapore Business.
Singapore Motor Insurance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increasing Vehicle Ownership
- 4.2.2 Economic Growth
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4.3 Market Restraints
- 4.3.1 Claims Fraud
- 4.3.2 Price Competition
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Buyers
- 4.4.2 Bargaining Power of Suppliers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitutes
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Insights into Latest Technologies Used in the Industry
- 4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Insurance Type
- 5.1.1 Third Party Liability
- 5.1.2 Comprehensive
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5.2 By Distribution Channel
- 5.2.1 Agents
- 5.2.2 Brokers
- 5.2.3 Banks
- 5.2.4 Online
- 5.2.5 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 MSIG Insurance (Singapore) Pte.Ltd.
- 6.2.2 Tokio Marine Life Insurance Singapore Ltd.
- 6.2.3 The Great Eastern Life Assurance Company Ltd.
- 6.2.4 Aviva Ltd.
- 6.2.5 Liberty Insurance Pte. Ltd.
- 6.2.6 United Overseas Insurance Ltd.
- 6.2.7 Axa Insurance Pte. Ltd.
- 6.2.8 Etiqa Insurance
- 6.2.9 Auto & General Insurance (Singapore) Pte. Ltd.
- 6.2.10 Ecics Limited*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
** Subject To AvailablitySingapore Motor Insurance Industry Segmentation
This report aims to offer a detailed analysis of the Singapore motor insurance market. It concentrates on the market dynamics, emerging trends in the segments and regional markets, and insights into various product and application types. Also, it focuses on the key players and the competitive landscape in the market. The Singapore Motor Insurance Market is segmented by Insurance Type (Third Party Liability and Comprehensive) and Distribution Channel (Agents, Brokers, Banks, Online, and Other Distribution Channels). The report offers the market sizes and forecasts in value (USD) for all the above segments.
| By Insurance Type | Third Party Liability |
| Comprehensive | |
| By Distribution Channel | Agents |
| Brokers | |
| Banks | |
| Online | |
| Other Distribution Channels |
Singapore Motor Insurance Market Research FAQs
What is the current Singapore Motor Insurance Market size?
The Singapore Motor Insurance Market is projected to register a CAGR of 2% during the forecast period (2024-2029)
Who are the key players in Singapore Motor Insurance Market?
MSIG INSURANCE (SINGAPORE) PTE. LTD., TOKIO MARINE LIFE INSURANCE SINGAPORE LTD., THE GREAT EASTERN LIFE ASSURANCE COMPANY LIMITED, AVIVA LTD and LIBERTY INSURANCE PTE LTD are the major companies operating in the Singapore Motor Insurance Market.
What years does this Singapore Motor Insurance Market cover?
The report covers the Singapore Motor Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Singapore Motor Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Motor Insurance in Singapore Industry Report
Statistics for the 2024 Singapore Motor Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Singapore Motor Insurance analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
