Sumitomo Life Insurance Company, one of the largest life insurance companies in Japan said it’s investing USD 90 million in Singapore’s homegrown insurtech startup Singapore Life. As part of the deal, Sumitomo Life will acquire 25% of all issued and outstanding shares in Singapore Life.
This investment brings Singapore Life’s valuation to USD 358 million, Singapore Life’s CEO Walter de Oude told The Business Times.
The local insurer plans to expand its product offerings in the coming months to further entrench its position as a technology-first life insurance company in the region. It also looks to ramp up its “mobile-first” ambition, de Oude added.
This investment comes amid Sumitomo’s anticipation of rapid growth in Southeast Asia’s life insurance market, particularly in Singapore.
“By investing in Singapore Life, which has in-depth expertise and know-how in utilizing technology, we aim to strengthen our ability in gathering information on the latest trends in Singapore where insurtech is flourishing; as well as the application of technology to actual business operations in order to improve customer ease and achieve greater management efficiency,” Masahiro Hashimoto, President and CEO of Sumitomo Life said in an official statement.
Singapore’s insurtech scene is undergoing a fundamental shift following changing demands in the life insurance market that seek more flexibility and customization instead of a one-size-fits-all product.
Singapore Life, founded in 2014, became the first local insurer to be fully licensed by the Monetary Authority of Singapore (MAS) since the regulating body was established in 1971. Besides it, there are also other emerging insurtech players such as Tokio Marine Life Singapore and PolicyPal that are shaking up the insurance landscape in Singapore.