Overview
Insurers provide insurance coverage and risk financing solutions to protect communities, assets, and corporates from the physical impact of climate risks such as natural disasters. To strengthen the sector’s ability to support the risk financing needs in the region, we can enhance key enablers such as data and technology, and leverage alternative risk financing tools such as insurance-linked securities to deliver better solutions and protection.
3 in 4 people
affected by natural disasters globally in 2025 were in Asia
According to the Centre for Research on the Epidemiology of Disasters
(CRED), Asia accounted for 74.3% of people affected by natural disasters globally in
2025, representing 81.9 million people..
US$73 billion
economic cost of natural disasters in Asia Pacific
Natural disasters resulted in overall losses amounting to approximately US$73 billion in Asia-Pacific in 2025, above the 10-year average of US$66 billion. Only US$9 billion, or around 12%, was insured.
MAS’ Initiatives
Protected Cell Company Framework
MAS is developing a legislative framework for a new Protected Cell Company (PCC) corporate structure, to support the growth of alternative risk transfer solutions and deepen Singapore’s role as a risk management hub.
Risks today are more complex, more connected, and harder to price, and Asia remains significantly underinsured. Companies globally are seeking to retain greater control and flexibility in risk financing and retention or procure risk coverage to complement traditional insurance capacity.
The framework will provide a flexible and robust structure that allows risks to be ring fenced efficiently, while operating within a single legal entity. It will be designed to support insurance use cases including captive insurance, insurance-linked securities, and sovereign risk pools.
Risks today are more complex, more connected, and harder to price, and Asia remains significantly underinsured. Companies globally are seeking to retain greater control and flexibility in risk financing and retention or procure risk coverage to complement traditional insurance capacity.
The framework will provide a flexible and robust structure that allows risks to be ring fenced efficiently, while operating within a single legal entity. It will be designed to support insurance use cases including captive insurance, insurance-linked securities, and sovereign risk pools.
Insurance-Linked Securities Grant Scheme
Insurance-linked securities (ILS) is an alternative risk financing solution that allows risk carriers to transfer their peak portfolio risks to capital market investors, including natural catastrophes, thereby playing an important role in disaster risk management by providing additional insurance capacity.
MAS supports the development of the ILS market in Singapore through initiatives to enhance our regulatory and legal infrastructure, and incentivise ILS issuers and fund managers to anchor their business activities here.
Learn more about the Insurance Linked Securities Grant Scheme.
Global-Asia Insurance Partnership (GAIP)
The Global-Asia Insurance Partnership (GAIP) is a tripartite partnership between the global insurance industry, regulators and policymakers, and academia. GAIP supports Asia’s insurance markets by addressing data gaps, strengthening industry regulator collaboration, and developing insurance talent across the region. Its work focuses on helping governments, regulators and insurers better understand and manage protection gaps, strengthen health and retirement resilience, and respond to the growing impacts of climate change across Asia.