SINGAPORE INSURTECH MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 - 2027)

SINGAPORE INSURTECH MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 - 2027)

Singapore has one of the region’s largest concentrations of Insurtech start-ups with over 80 companies registered on the Singapore FinTech Association’s Insurtech directory. What differentiates Singapore from many other countries in the region, is that two-thirds of the population are already insured. This means that while other jurisdictions in the region may be using Insurtech to reach new customers, the industry in Singapore is primarily focused on improving and streamlining existing services and products. Singapore is a lively hub for AI and big data innovation and these technologies lend themselves to service improvements by creating hyper-personalized services – for example, some insurers are cross-referencing call center recordings with chatbot data to gain new insight into customer sentiment and agent service quality. The market is expected to grow annually by 9% (CAGR 2021-2026).

The COVID-19 pandemic has also highlighted the importance of managing future risks in Singapore and around Asia, and motivated companies and governments to seek better insurance. Insurance firms pursued technology in more advanced ways. With the use of AI, IoT and blockchain, risk events can be tracked more efficiently and the path to pay-outs for claims smoothed if certain pre-defined conditions occur.

Another factor which is assisting Insurtech innovation to thrive in Singapore is the regulatory environment, which is supportive of Insurtech innovation and adoption. In a 2019 speech by the Monetary Authority of Singapore’s (MAS) Board Member and then-Minister of Education Ong Ye Kung, Minister Ong recognized that Insurtech collaborations have taken off in Singapore and stated that the MAS will continue to encourage and foster such partnerships. The MAS’s FinTech regulatory sandbox launched in 2016. The sandbox enables companies to experiment with innovative financial products and services in a live environment but within a well-defined space and duration, with certain safeguards in place. Certain regulatory requirements which the companies may otherwise be subject to are relaxed for a defined period. Several Insurtech companies have taken advantage of access to the regulatory sandbox including PolicyPal, which leverages blockchain technology to work with insurance partners in the Southeast Asia region. PolicyPal was one of the first companies to participate in the MAS regulatory sandbox. In addition, Inzsure, which offers on-demand corporate insurance solutions spent time in the MAS regulatory sandbox and exited on October 31, 2019. In August 2019, MAS launched Sandbox Express, a faster option for activities where the risks are low and well-understood by the market and can be managed within pre-defined parameters. Market testing in Sandbox Express can commence within 21 days of applying to MAS.

Key Market TrendsEquity Funding

In 2020, late-stage VC3 funding accounted for USD4.1 billion, up 27% year-over-year, driven by 15 mega-rounds worth a total of USD3.2 billion: three at Series C, worth about USD1.2 billion; three at Series D, worth USD700 million; eight at Series E+, worth USD1.9 billion; and one at growth equity stage, worth USD230 million.

Insurtech funding transaction

Singapore accounts for a 3 per cent share of total insurtech funding transactions worldwide in the fourth quarter of 2021. The pandemic has accelerated the industry’s digital transformation by at least five years—forcing incumbents to open or enhance digital distribution channels and to make corresponding upgrades to back-office capabilities.

Competitive Landscape

Companies across the world have huge investments in this segment of the market. In Singapore Insurtech Market, there are many companies fragmented over minor shares. Bolttech, GoBear, DocDoc, Igloo, Tribe Accelerator, CredoLab, Anapi are amongst the Singapore Insurtech Companies.

Adoption of technological platforms and up-gradation to new Technology leads to increasing in Insurtech companies revenue. Innovation and technological advancement taking a pace as the COVID-19 and urbanization strike general people to the adoption of Insurance from insurtech firms.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Bolttech
GoBear
DocDoc
Igloo
Tribe Accelerator
CredoLab
Anapi
Airome
Singlife*

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