Insurance-Linked Securities (ILS) are an alternative risk financing solution that allow risk carriers to transfer their peak portfolio risks to capital market investors.
Singapore aims to be the leading ILS hub in Asia for Asia, which will complement Singapore’s deep debt capital market and current offerings as a reinsurance and specialty insurance centre in Asia.
A vibrant ILS market will help to provide additional insurance capacity through financing from the capital markets that can be catered towards all forms of risks (e.g. natural catastrophes, longevity, mortality, operational risks, cyber-risks etc.). MAS has adopted a three-pronged approach to grow the ILS market and ecosystem in Singapore. This includes:
I.Improving data quality and the standardisation in the region to develop industry-loss based indices upon which ILS can be structured.
II.Establishing and enhancing our regulatory, tax and legal infrastructure to support various ILS instruments.
III. Developing Singapore ILS ecosystem through incentivising ILS issuers to domicile their ILS in Singapore through our grant schemes, encouraging ILS service providers to anchor their operations here.
MAS ILS Grant Scheme Funds
Funds 100% (capped at SGD 2 million) of upfront ILS bond issuance costs covering all forms of risks such as longevity, mortality and operational risks, beyond just natural catastrophes.
Companies and Financial Institutions based onshore and offshore. This includes multilateral organisations.
How to Apply
Parties who are interested to apply for the ILS grant scheme or to set-up an ILS related service/entity, fund, or fund manager in Singapore may write directly to firstname.lastname@example.org for more information.