Corporate insurance in Singapore and the differences with insurance in China
The corporate insurance system in Singapore
Property insurance for business
There are several categories of insurance for business in Singapore. The first is property insurance. It covers buildings, factories, equipment, furniture and other kinds of property. If any of these are damaged, property insurance will cover it. This type of insurance can also include fire insurance, insurance against natural hazards such as lightning or flooding. In addition, business companies can also buy “all risk” insurance that covers risks such as theft, terrorism and the loss of goods during logistics.
Employee insurance for businesses in Singapore

Source: Public Service Commission Singapore, Central Provident Fund
The second type of business insurance in Singapore covers employee liability. In Singapore, the most important types of insurance for employees are work Injury Compensation and Basic Medical Insurance. In the first case, insurance provides reimbursement if employees are injured or ill received during work, the second one covers basic medical needs. Under the Singapore Employment Law, all employers are also required to pay Central Provident Fund contributions for all Singaporean employees. This is basic health insurance for Singaporeans only.
In Singapore, employers are required to purchase work-related injury compensation insurance for local and foreign employees who are engaged in manual labor as well as for any employees whose salary is less than $ 2,600 per month.
For foreigners who have a S Pass and Work Permit, employers must also purchase insurance plans. It must be valid for S Pass employees and work permit holders while their contract with the company lasts.
Legal liability insurance for businesses in Singapore
The third type of business insurance in Singapore is liability insurance. It provides compensation in the case of personal injury or damage to property and premises as a result of business activities and decisions made by directors that could adversely affect the business.
The corporate insurance system in China
Corporate insurance system in China includes property insurance and personal insurance. Property insurance can be divided into property loss insurance, liability insurance, and credit guarantee insurance. This is the most common insurance for business purposes. Personal insurance can be divided into accident insurance, health insurance, and life insurance. Some companies provide those types for their employees.
Social security is compulsory for employees in China. Contributions are paid by employers depending on the industry. This also covers incidents that can occur outside of the office, during business travel, or during transportation to and from the office. Since 2011 according to a state level order, all foreign employees in China also should get Chinese statutory social insurance.

Data Source: HrOne, designed by daxue consulting, Chinese social insurance
What are the differences between the business insurance in China and in Singapore

Data Source: qianzhan.com, designed by daxue consulting, Shares of insurance companies in China 2018
First, China’s insurance system is basically still in an oligopoly. There are four major insurance companies of the People’s Insurance Company of China (PICC), China Life Insurance Company, Ping An Insurance Company of China, and China Pacific Insurance Company (CPIC). They are accounted for more than 90% of the current Chinese insurance market share. Among them, the wholly state-owned PICC and China Life Insurance accounted for almost 70% of the insurance market.
Comparing to Singapore, the development of China’s insurance industry is still at a low level. According to the insurance spending, which represents the importance of insurance system in the country, Singapore has an insurance spending ratio of 7% of the GDP, while in China it accounts only for 2%.
The prices for business insurance in Singapore and in China
In China there is no uniform performance of how business should pay for commercial insurance per year, and it is usually calculated according to its type. However, under normal circumstances, the cost of buying commercial insurance for one year can go from 500 to 5000 yuan.
The office package from Singaporean AIG SME Business Insurance costs $253. It covers property risks, liability risks, personal accident for directors, work Injury compensation. Singaporean UOB BizCare costs 285$. It covers liability risks, burglary, cyber risks, equipment insurance. Another insurance from Etiqa BOSS costs 240$ and covers all risks, business interruption, personal accidents, liability risks and work injury.
Key takeaways
- Even though the insurance system in China is still developing, it provides unique opportunities for commercial health insurance companies to enter, as more and more companies are getting interested to secure their assets.
- Singaporean insurance companies offer a wide range of insurance plans and the price I relatively low due to high competitiveness in the market, while corporate insurance system in China is dominated by several key players.
- Both in Singapore and in China employers should get the insurance for their employees. In China it calls Social Security, in Singapore employers pay Central Provident Fund contributions.