The motor insurance industry in Singapore is projected to grow at a compound annual growth rate (CAGR) of 5.7%, increasing from SGD1.4 billion ($1.1 billion) in 2026 to SGD1.7 billion ($1.3 billion) by 2030, in terms of gross written premium (GWP), according to GlobalData, a leading data and analytics company.

GlobalData’s Insurance Database estimates that the Singapore motor insurance industry will reach SGD1.3 billion ($990 million) in 2025, reflecting an annual growth rate of 8.3%. The growth is expected to be supported by the increase in premium rates, improving distribution, rising electric vehicle (EV) adoption, technology-enabled underwriting, and continued product innovation under pro-competition regulatory oversight.

Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “The growth of motor insurance in Singapore evolves from premium-led gains to more balanced, technology-enabled expansion. The 2021–25 period featured pricing firming and a healthy demand environment for motor insurance. The growth during 2026-30 will be supported by EV adoption, Insurtech integration, and embedded distribution that broaden reach while improving risk selection.”

EVs have begun dominating Singapore’s new-vehicle sales. According to the Land Transport Authority, EVs accounted for 41% of the total vehicle sales in Singapore in H1 2025, compared to 32.4% in H1 2024 and 14.3% in H1 2023. The rise in EV sales, along with an increased number of road accidents and EV-related elevated claims, will increase EV premiums further, which are generally high due to the associated risks. According to the Singapore Police, traffic accidents have increased by 8.9% in H1 2025. The increase in EV premiums will support the growth of motor insurance during 2026-30.

Pricing dynamics tightened in 2024, when motor premiums rose by 11% despite minimal vehicle population growth. This increase was driven by inflation-linked repair costs and the complexity of EV claims. The pressure has persisted into 2025, with insurers signaling further upward adjustments to address underwriting losses. Rate increase is expected to continue as carriers rebalance coverage and pricing mix, manage claims leakage, and align with higher severity trends across parts and labor—supporting premium growth.

Sahoo adds: “Digital distribution and embedded models are reshaping customer acquisition and service. The growth in Singapore’s online motor insurance market reflects consumer preference for instant issuance, digital claims, and flexible coverage. Embedded insurance is also gaining ground, with GWP expected to rise as application programming interfaces (APIs) and super apps integrate motor cover at the point of mobility or commerce, improving conversion and lowering distribution costs. Additionally, AI capabilities highlight the shift toward real-time risk assessment, dynamic pricing, and claims automation, which can lower acquisition and servicing expenses in motor insurance.”

Technology and product innovation are redefining the economics of motor insurance in Singapore. Insurers are accelerating investments in AI and telematics to sharpen underwriting, personalize coverage, and speed up claim settlements—steps that can lower loss ratios and improve customer experience. Usage-based insurance models align premiums with real driving behavior, incentivizing safer practices and potentially reducing frequency and severity over time.

Sahoo concludes: “Singapore’s motor insurance market is on the growth track. Pricing discipline, new digital entrants, and regulatory support will shape a more data-driven, customer-centric market, while embedded and online channels accelerate access and efficiency. As underwriting rigor strengthens and technology adoption deepens, carriers that align product design, pricing, and claims with evolving mobility patterns stand to outperform—anchoring profitable growth through 2026–30.”