SINGAPORE Trends and Developments Contributed by: Carmel Green and Claire Schekeloff, RPC Premier Law
incidents given their reliance on digital operations, online payments and cloud-based systems. The apparent protection gap in cyber insurance among SMEs in Singapore is attributable to several factors, including: • a historical preference for bundled insurance pack- ages that cover multiple business risks, many of which omit cyber cover; • tighter economic conditions across the region, which have placed cost pressures on SMEs and limited their capacity to invest in additional lines of cover (or to renew cyber protection, which may be viewed as “non-essential”); and • an entrenched and persistent view among SMEs that cyber insurance is complex, expensive or only necessary for larger organisations. Notwithstanding the current protection gap, the long- term outlook on cyber insurance in Singapore remains positive. The current level of underinsurance among SMEs is not sustainable in the wake of more frequent and sophisticated cyber-attacks and as regulators, in turn, apply greater scrutiny to data governance and cyber resilience standards among SMEs. A resurgence of M&A activity/W&I insurance The rebound in M&A activity across Asia has benefit- ted Singapore, translating into an increased demand for transactional risk products, such as W&I insur- ance. The entry of new underwriting capacity and the expansion of existing players intensified competition for W&I insurance, which led to a noticeable softening across the market in 2025. Deal-making momentum across Asia is expected to build into 2026, supported by rising capital flows and a broadly bullish investor sentiment across key regional markets. This is likely to place additional downward pressure on these rates as insurers compete for premium share on these deals. Micro-insurance across Asia Emerging Asian markets continue to face some of the lowest insurance penetration and density rates glob- ally, particularly among low-income and rural com- munities. This has brought micro-insurance back into focus as a critical tool for closing protection gaps in the region.
Historically viewed as a low-value product among insurers, micro-insurance is now gaining momentum across Asia, as digitalisation, higher levels of mobile adoption and financial inclusion initiatives make micro-insurance far easier (and more profitable) to distribute at scale. Countries such as India, the Phil- ippines and Bangladesh have seen rapid growth in micro-insurance uptake in recent years, and this trend is expected to continue into 2026 and beyond. Recent data even suggests that the APAC micro-insurance market will reach USD17.1 billion by 2033, represent- ing a CAGR of 16.11% during 2025–2033. While Singapore is not a traditional micro-insurance market, local firms have historically developed inno- vative products to tap into its potential. For example, “HIVE by Income” (a Singapore-based Insurance-as- a-Service platform that is designed to help insurers and digital platforms launch innovative embedded insurance offerings) recently collaborated with a Viet- namese company to deliver a pay-as-you earn micro- insurance product tailored to vulnerable gig economy workers, addressing the needs of domestic helpers in Vietnam. As digital adoption and financial inclusion efforts con- tinue to accelerate, micro-insurance is an area that is likely to see sustained momentum into and beyond 2026. Tighter economic conditions, regulation and compliance While Singapore outpaced initial growth forecasts in 2025, the broader outlook moving into 2026 is more tempered. Recent MAS guidance anticipates a reduction in full year growth to around 1–3%. This shift reflects a more cautious regional operating envi- ronment, shaped by softer economic conditions and heightened geopolitical uncertainty. Tighter economics As we move into 2026, insurers across Asia will be operating in a far more constrained macroeconomic environment. Many of the financial pressures that defined 2025 are expected to persist, with carri- ers continuing to face elevated operating expens- es, labour shortages, supply chain disruptions and renewed uncertainty around global trade policy.
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