WICA Premium Increase Singapore 2025 | Why Insurers Adjust Renewal
- PT
- Sep 14
- 2 min read
Why Your WICA Premium Just Shot Up 30–40% and What You Can Do About It
Think a clean claims record protects you from a premium hike? It doesn’t. Many SMEs are now paying 30 to 40% more for WICA renewals, even without a single claim. The reason is not about you alone, it is about wider changes in law, wages, and risk sharing. Insurance pricing is no longer based only on your personal claims. A WICA premium increase Singapore story is now shaped by government updates, rising wages, and medical costs. This means SMEs across different industries are paying more, even if they never had an accident at work.
The Hidden Forces Behind Premium Spikes
Insurance pricing is not just about your company. It reflects legal limits, wage growth, healthcare costs, and the claims pattern of your whole sector. That is why insurers raise premiums even when your history looks perfect.
Key Drivers of Premium Increases
Higher Compensation Limits from Nov 2025. Death payout increases to S$269,000, permanent incapacity to S$346,000, and medical expenses to S$53,000. Insurers must prepare for higher payouts, so base rates go up.
Wage Growth and Healthcare Inflation. Payouts under WICA are based on an employee’s Average Monthly Earnings. When salaries and medical costs rise, insurers adjust pricing to match the new exposure.
Expanded Coverage Rules. All non-manual staff earning S$2,600 or less must be covered. Light duties and medical leave also qualify. More staff covered means higher payroll at risk.
Sector and Industry Pooling, even if your company is claim-free, insurers look at the entire sector. If accidents rise in construction, F&B, or manufacturing, everyone in that sector pays more.
Reinsurance and Market Conditions. Global insurance and reinsurance costs have risen. These costs flow down into SME premiums.
What This Means for SMEs
A clean claims record no longer guarantees stable pricing.
Companies with more manual work, or staff close to the S$2,600 threshold, will feel the hardest impact.
Without preparation, renewal costs can rise 30 to 40% simply due to new laws and economic factors.
How to Push Back
Renewal Review: Start early, 60–120 days before expiry, to compare multiple insurers.
Accurate Declarations: Be clear on payroll, hazards, and job categories. Wrong or vague data leads to loadings.
Track Safety and Incidents: Strong records support better negotiations.
Check Coverage Limits: Make sure your policy matches MOM’s new 2025 limits.
Case Study
A small café with 15 staff had no claims for 3 years. Wages rose 8%, kitchen staff handled hot work that was never disclosed, and policy limits were not updated. At renewal, the insurer raised their premium by 35%.
With a renewal review and updated declarations, the increase might have been closer to 10 to15%.
If your WICA premium has jumped despite no claims, you are not alone.
We will:
Compare your policy with MOM’s new 2025 limits
Check your declarations and payroll splits
Benchmark multiple insurers for hidden loadings
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