Monetary Authority of Singapore Annual Report 2012/2013

A PURPOSEFUL FINANCIAL CENTRE

Insurance

The non-life insurance industry’s growth moderated in 2012, growing at 4.8% to $9.3 billion. This was due to a decline in reinsurance underwriting activity following the 2011 natural catastrophe events in Asia-Pacific. The 2011 events tested Singapore’s ability to handle the burden of claims in the aftermath of the major catastrophes. However the reinsurers responded strongly by recapitalising and even strengthening their capital position to handle the claims. The experience strengthened Singapore’s resilience, and also built up its reputation as a ‘first responder’ to these major events in Asia. Concurrently, re/insurers also strengthened their capabilities on underwriting natural disasters risk by enhancing the quality of their data and risk modelling through partnerships with research institutes such as Nanyang Technological University’s Institute Catastrophe Risk Management (on Maritime Risk, Urban Risk), Asia Risk Centre (Agriculture Risk and Food Security Research); as well as commercial modelling agencies.