Life insurance payouts hit $5.08b in Q1

Health claims added another $712m, mainly from Integrated Shield Plans.

Individuals and families in Singapore received a total of $5.08b in claims and policy maturity payouts in the first quarter of 2026, according to the Life Insurance Association, Singapore (LIA Singapore). This marks the highest Q1 payout level since 2021.

Of the total, $555m came from 5,507 death, critical illness, and disability claims, whilst $4.52b was paid from 87,402 matured policies.

Health insurance also provided support, with $712m in additional claims, largely driven by Integrated Shield Plans (IPs) and IP riders. The report noted that $2.87b in health claims were paid out in 2025.

The industry also recorded $1.69b in total weighted new business premiums in Q1 2026, a 14.3% increase year-on-year from $1.48b in Q1 2025.

Annual premium policies remained the largest segment at $1.23b, whilst single premium products surged 36.5% to $463.3m.

The report said the increase in single premium uptake may reflect seasonal factors, with policyholders using early-year liquidity to review and commit to longer-term financial planning.

More than seven in ten Singapore residents are now covered under Integrated Shield Plans.

Around 33,000 additional residents purchased IPs or IP riders in Q1 2026 ahead of regulatory changes to IP riders effective 1 April 2026.

New business premiums for individual health policies also rose to $61.2m, an increase of $20.6m from Q1 2025. Overall in-force health-related premiums increased by approximately $395m.

Meanwhile, investment-linked policies (ILPs) remained the largest product segment, accounting for 43% of total weighted new business premiums ($723m), up 8.7% year-on-year.

Participating (par) policies also saw strong demand, rising 35.6% year-on-year to $446m, representing 26% of total new business premiums.

Financial Adviser and Tied Representatives handled 78.3% of new policies and contributed 67.6% of total sum assured ($34.2b).

“While advisory remains the dominant distribution channel in Singapore, individuals and families are engaging across a mix of options depending on their needs,” the report said.

Banks contributed 25.9% of sum assured, whilst online direct channels accounted for 5.7%.

The life insurance workforce remained stable at 9,495 employees as of 31 March 2026, with insurers investing in AI adoption, digital transformation, and employee upskilling to improve efficiency and customer experience.

LIA Singapore President Wong Sze Keed said consumers are increasingly prioritising financial resilience amidst global uncertainty, reflected in higher claims payouts and continued growth in new business.

She added that the industry will continue focusing on consumer education, protection gap reduction, and long-term financial planning support.

“As healthcare needs and financial priorities evolve, our role is to empower individuals with the knowledge, tools and solutions to make confident decisions — so they can navigate life’s uncertainties with greater clarity and be better prepared for themselves and their loved ones at every stage," said Keed.

This story was updated as of 11:27 am, 26 May 2026 to reflect updated figures provided by LIA in the latest report.