Budget Direct Insurance has introduced a new commercial vehicle insurance product in Singapore, aimed at businesses that depend on vehicles for their operations. Targeting small business owners, contractors, and tradespeople, the insurance provider is expanding offerings in a growing market.
This new product provides both comprehensive and third-party coverage for light goods vehicles, including vans, lorries, and trucks. Customers have the option to tailor their policies with add-ons such as roadside assistance, a no-claims discount protector, and the ability to select their preferred repair workshop.
Simon Birch, Budget Direct Insurance’s CEO, emphasized the importance of the new product. “Businesses rely on their vehicles as critical assets, and our goal is to provide them with affordable, reliable protection while maintaining the high standards our customers have come to expect. This launch is a testament to our dedication to meeting the evolving needs of businesses in Singapore,” he said.
The insurer utilizes a direct-to-consumer model, cutting out intermediaries to reduce costs. This approach allows Budget Direct Insurance to offer competitive premiums while maintaining comprehensive coverage. The company has been present in Singapore since 2016, providing various policies, including car, motorcycle, and travel insurance. It later expanded into higher-risk car insurance to serve a broader range of customers.
The launch coincides with optimistic growth forecasts for Singapore’s general insurance market. According to GlobalData, the market is expected to reach $8.1 billion in gross written premiums (GWP) by 2029, up from $6 billion in 2024. This represents a compound annual growth rate (CAGR) of 6.2%.
Several factors contribute to this growth, including economic recovery, rising healthcare costs, and increased premiums across various insurance segments. Motor insurance is projected to grow significantly, with an estimated 9.4% increase in 2024, fueled by a 30% rise in vehicle registrations during the first 10 months of 2024 compared to the same period in 2023. The adoption of electric vehicles (EVs) also plays a crucial role, supported by Singapore’s goal to phase out internal combustion engine vehicles by 2040. Motor insurance is expected to achieve a CAGR of 4.1% through 2029, indicating a consistent demand and the ongoing shift towards EVs. The construction sector’s activity and the rising demand for health insurance are also expected to support the broader market expansion.
