Kathmandu. Insurance is becoming an increasingly important tool for Singaporean businesses to cope with growing geopolitical and economic uncertainty.
A survey of 3,500 senior business leaders found that companies are increasingly focusing on insurance solutions beyond traditional protections, according to the 2025 Geopolitical & Economic Risk and Resilience Report from Blightly. About 32% of companies in Singapore plan to have an insurance policy covering risk and crisis management in 2025. That was 20% in 2024.
Businesses are using insurance to expand business in new markets, protect energy and mineral resources, and mitigate risks arising from cyber threats and political obstruction, according to the company.
Nearly 74% of insurance executives in Singapore cite geopolitical and economic uncertainty as an impediment to growth. That number is expected to reach 75% by mid-2025.
Concerns about inflation have also increased in Singapore. This year, 30% cite inflation as a major risk, compared with 25% in 2024.
Meanwhile, 26 per cent of those surveyed said economic uncertainty was their biggest threat. That’s up from 20% a year ago.
To strengthen resilience, 38% of Singaporean companies plan to reassess the safety of their overseas operations. That was 25% in 2024.
In addition, 9 out of 10 companies surveyed plan to switch suppliers or reroute operations due to geopolitical tensions. It was 84% in January.
Despite the challenges, many Singaporean companies continue to invest in high-risk and high-yield sectors, such as AI, fusion energy and lunar exploration. To support these enterprises, 37% of companies are increasing their spending on risk management and loss prevention. That was 21% at the beginning of 2024.
“Innovative insurance solutions, including political risk coverage, parametric supply chain protection and crisis management services, are helping businesses operate confidently in uncertain circumstances,” said Bethany Greenwood, CEO of Beazley Furlongs and Head of Special Risk Group at Beasley.
