Schemes and Initiatives
Published Date: 12 June 2019

Insurance & Risk Financing Initiatives

Asia’s long-term growth prospects for the insurance industry remain strong, underpinned by rapid urbanisation, infrastructure development and trade growth in Asia. In turn, this will drive a greater need for insurance and risk financing solutions, as governments, corporates and individuals seek to manage their assets and wealth at risk.

Yet, the region continues to face persistent and structural protection gaps which are impacting the region economically, financially, and socially. Such structural gaps sometimes arose due to the lack of good quality data, as well as less developed loss frequency and severity models in Asia.

To narrow the protection gap and strengthen Asia’s risk resilience, MAS has embarked on a number of industry-wide initiatives to support more robust quantification of risks and the co-creation of innovative risk financing solutions.
Insurance-Linked Securities (ILS)

As part of our vision to grow as the leading ILS hub for Asia, Singapore has taken progressive strides to develop the ILS market in Singapore. This includes:

  • The establishment of an alternative risk transfer workgroup to advise MAS on initiatives to support the development of Singapore as an ILS hub.
  • The introduction of the ILS grant scheme which funds up to 100% of upfront issuance costs of a ILS catastrophe bond in Singapore. The scheme was launched in February 2018 and has been extended currently till December 2022. 
  • Ongoing review to enhance Singapore regulatory, corporate and taxation regime to accommodate different and innovative forms of ILS instruments. 
  • Supporting the set-up of ILS service providers, funds, and fund managers in Singapore.

More information about ILS

Natural Catastrophe Data Analytics Exchange (NatCatDAX)

In 2016, Singapore launched the Natural Catastrophe Data Analytics Exchange (NatCatDAX) to address the lack of holistic and good quality data for natural catastrophe risks in the region and the resulting growing protection gap.

More information about the NatCatDAX

Cyber Risk Management (CyRiM)

CyRiM is a pre-competitive research project launched in 2016. It is an MAS-industry-academia public-private-partnership led by the Nanyang Technological University’s (NTU) Insurance Risk and Financial Research Centre (IRFRC) with strong focus on Singapore and Asia, but supported by global collaborations.

More information about CyRiM

Global Asia Insurance Partnership (GAIP)

The Global-Asia Insurance Partnership (GAIP) will be established in Singapore as a leading global Centre of Excellence in insurance and risk management, with a focus on Asia. It is a tripartite partnership between the global insurance industry, regulators and policymakers, and academia. 

GAIP is expected to commence work in 2021, with an initial focus on pandemic risk and climate risk.

Southeast Asia Disaster Risk Insurance Facility (SEADRIF)

In partnership with the Japan Ministry of Finance and supported by the World Bank, the Southeast Asia Disaster Risk and Insurance Facility (SEADRIF) an ASEAN+3 initiative, is the first regional catastrophe risk facility which provides climate and disaster resilience solutions for ASEAN Member States.

Incorporated and domiciled in Singapore, SEADRIF will be established as a trust which owns the SEADRIF Insurance Company. The Company is licensed as a general insurer by MAS in October 2019.

The SEADRIF Insurance Company’s first product is a catastrophe risk insurance policy insuring flood risks. The policy will provide quick response and immediate financing in the unfortunate event of a flood disaster in order to reduce the impact on affected communities. 

SEADRIF is intends to offer more such products in the future, to cover more ASEAN Member States, and other perils, and also offering other disaster risk financing instruments.

Belt & Road Initiative (BRI) Insurance Consortium

China’s Belt & Road Initiative (BRI) seeks to connect Asia with the European and African continents through greater connectivity and networks with the aim of improving regional integration, increasing trade and stimulating economic growth on a trans-continental scale.

The BRI Insurance Consortium will provide top-up capacity and specialized insurance coverage for BRI projects in APAC (ex-China), in key lines of business including construction and engineering, project cargo and political violence and political risks.

The Singapore Branch of China Reinsurance Group (China Re) is the administrator of the Consortium, which brings together Singapore-based insurers, reinsurers, and brokers who will contribute insurance capacity, and provide risk management services.

More information on the Belt & Road Initiative Insurance Consortium