Types of Insurance Entities
Insurers in Singapore comprise licensed insurers, authorised reinsurers, approved marine, aviation and transit (MAT) insurers and foreign insurers. Insurance brokers in Singapore comprise registered insurance brokers, approved MAT insurance brokers and approved reinsurance brokers.
Find out the description of each type of insurance entity and their permitted activities.
Insurers can be licensed as direct insurers, reinsurers or captive insurers.
Direct life insurers are licensed to write life policies as well as long-term accident and health policies.
Direct general insurers are licensed to write all insurance business other than life policies and long-term accident and health policies. Direct general insurers include specialist insurers that write marine mutual insurance business, trade credit and political risk insurance business as well as financial guarantee insurance business.
Direct composite insurers are licensed to write both life and general insurance business.
Reinsurers are licensed to write life reinsurance business and/or general reinsurance business in Singapore. They are not permitted to write direct business and are only allowed to assume all or a part of the insurance or reinsurance risk written by another insurer.
Reinsurers include special purpose reinsurance vehicles that enter into insurance securitisation for purposes of fulfilling the obligations under the reinsurance contracts with the ceding insurers.
Captive insurers are licensed to write insurance business which consists principally of risks of its related corporations.Licensing:
Foreign insurers are approved under the law of another country or territory to carry on insurance business in that country or territory. These insurers carry on business in Singapore under a foreign insurer scheme established under Part IIA of the Insurance Act. Currently there are two foreign insurer schemes in Singapore: The Lloyd's Scheme and the Lloyd’s Asia Scheme.
Lloyd's Asia Scheme
Lloyd’s members may carry on insurance business in Singapore through locally-incorporated service companies, which are registered with Lloyd’s of London (Asia) Pte Ltd, the approved Administrator of the scheme.
- Direct insurance brokers in respect of insurance policies relating to general business and long-term accident and health policies.
- General reinsurance brokers in respect of the reinsurance of liabilities under insurance policies relating to general business.
- Life reinsurance brokers in respect of the reinsurance of liabilities under insurance policies relating to life business.
- Only registered insurance brokers and exempt insurance brokers who are exempt under section 35ZN of the are allowed to conduct insurance broking activities in Singapore.
- Exempt insurance brokers include banks, insurers, capital markets services licensees and licensed financial advisers. They are not required to be registered as insurance brokers but must comply with all the applicable business conduct requirements prescribed in the and subsidiary legislations, including the , and notices and guidelines issued to insurance brokers under the Insurance Act.
Individuals Conducting Insurance Broking Activities
Approved insurance brokers are licensed or authorised under the law of a designated country to carry on insurance broking activities in that country.
They may carry on insurance broking activities in Singapore without the need to be registered under the Insurance Act and without any physical presence in Singapore as:
- Approved marine, aviation and transit (MAT) insurance brokers in respect of marine, aviation and transit insurance business.
- Approved general reinsurance brokers in respect of reinsurance of liabilities under insurance policies relating to general business.
- Approved life reinsurance brokers in respect of reinsurance of liabilities under insurance policies relating to life business.