Regulator sets in place plans for Singapore to be a global capital for Asian risk transfer
Source: Asia Insurance Review | Dec 2017
Singapore Cyber InsurTech Nat CAT SIRC
The Singapore authorities is stepping up the buzz in an already burgeoning insurance industry with a slew of initiatives announced last month, including strategies for the Lion City to be a global capital for Asian risk transfer.
The initiatives include:
- Full funding of upfront costs of local CAT bond issuances with effect from 1 January 2018 through a newly-formed insurance-linked securities (ILS) grant scheme, to promote Singapore in the global ILS bond market. The grant programme will be applicable to ILS bonds covering all forms of risks beyond just Nat CAT;
- Issuance of a CAT bond in Singapore in the near future;
- Formation of a Singapore-based infrastructure consortium to provide insurance solutions to risks associated with China’s Belt-Road initiative. The consortium will pilot two lines of business: construction and project cargo & liability;
- MAS to expedite sandbox application assessment so that FinTech firms can test and launch their innovative solutions faster;
- MAS to further loosen the regulatory boundaries for sandbox cases where the risks do not outweigh the potential benefits of the solution to consumers;
- MAS to promote electronic payments;
- MAS to strengthen cyber security and support the adoption of Artificial Intelligence (AI) and data analytics among financial institutions (FIs) through a S$27-million (US$19.8 million) grant scheme;
- Launch of the Asia Pacific Regional Information & Analysis Centre (FS-IAC) in Singapore, in order to facilitate the sharing of cyber threat information in a timely manner, and enable a rapid and coordinated response to emerging threats; and
- MAS to leverage technology to facilitate more efficient compliance in the financial services sector.
These various measures were announced at major industry events last month, namely the Singapore International Reinsurance Conference (SIRC) and the Singapore FinTech Festival. A