Insurance-Linked Securities (ILS) are a type of alternative risk financing solution that allows risk carriers to transfer their peak portfolio risks to capital market investors.
In addition to our current offerings as a reinsurance and specialty insurance centre in Asia, Singapore aims to grow ILS capabilities to support economic activities and resilience in the region. A vibrant ILS market will help to provide additional insurance capacity through financing from the capital markets for most risks underwritten by the insurance sector (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:
- Regularly reviewing and updating our regulatory and legal infrastructure to support various ILS instruments.
- Developing Singapore’s ILS ecosystem by incentivising ILS issuers to anchor their operations here through our grant scheme.
- Growing the ILS investor base through investor education and anchoring specialised fund managers here.
Grant Details
From January 2026 to December 2028, the Insurance Linked Securities Grant Scheme will fund:
1) New Issuances
a) For property catastrophe bonds:
- If issuance covers any proportion of risks originating in Asia Pacific: 70% funding (capped at S$1 million) of upfront issuance costs
- If issuance does not cover any Asia Pacific risks: 50% funding (capped at S$1 million) of upfront issuance costs
b) For non-property catastrophe bonds: 70% funding (capped at S$1 million) of upfront issuance costs
c) For collateralised reinsurance and sidecars: 70% funding (capped at S$500,000) of upfront issuance costs
2) Renewals
- For all ILS renewals, 30% (capped at S$500,000) of upfront issuance costs
The scheme is applicable to issuances covering any forms of risks, including natural catastrophes, longevity, mortality, operational risks, and cyber-risks.
Qualifying Issuer
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 fsdf_ext@mas.gov.sg for more information.
Related News
"Driving Asia's Growth - The Role of Reinsurance in Sustainable Development" - Keynote Address by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of the Monetary Authority of Singapore, at the 20th Singapore International Reinsurance Conference on 4 November 2024
"Growth and Opportunities in the ILS Market: A Singapore Perspective" - Speech by Mr Lim Cheng Khai, Executive Director, Financial Markets Development Department, Monetary Authority of Singapore, at the Artemis ILS Asia 2024 on 11 July 2024
"Growing a Vibrant Insurance Linked Securities Market in Asia" - Speech by Mr Lim Cheng Khai, Executive Director, Financial Markets Development Department, Monetary Authority of Singapore, at the Artemis ILS Asia Conference on 13 July 2023