The Singapore government continues to look to the capital markets to push the boundaries of its insurance and reinsurance market, with a desire to improve the sector’s ability to meet the risks of the capital market.
In unveiling a new strategy for the growth of the financial industry in Singapore, the Monetary Authority of Singapore (MAS) also highlighted the use of capital markets as a source of insurance and risk capital.
The strategy aims to position Singapore as a global financial center in Asia, with a globally connected market, supporting Asia’s development, and supporting Singapore’s economy.
Of course, Singapore has been looking to develop an insurance-linked market (ILS) for several years now.
The Monetary Authority of Singapore (MAS) has established a regulatory framework for the management and administration of the currency. people.
Continuing to develop this platform to attract more ILS businesses and make it more useful for sponsors and investors in the region, has always been the main goal of the government in Singapore and its latest growth strategy shows ILS, or insurance and risk transfer to capital markets will remain a part important.
In particular, MAS says in its proposed strategy, “Supporting risk insurance consulting and other risk management strategies in Asia, addressing pandemic, climate, and cyber threats.”
Although it also wants to, “Support the participation of capital markets in the payment of risk capital.”
The growth of the financial market in Singapore has always been important, as a major sector of employment and a source of income for the country.
As a result, continuing to improve, as seen in its ILS market and disaster bond issuance, is another area that we can expect to continue to look at from MAS over the next few years.
Another area of focus, related to the ILS market, is the desire to expand Singapore’s role as a center for climate risk transfer and restructuring.
In addition, additional financial measures to support sustainable investment and climate change are also seen as opportunities by the affected communities.
Singapore may be ready to bring its capital markets to work in the time of climate, fixed income and change, climate change and the insurance market (ILS), as there is an obvious opportunity to reduce some gaps. increase willingness to take risks to support global climate initiatives, as well as climate-sensitive industries in developing countries.
Lawrence Wong, Deputy Prime Minister and Minister of Finance, and Deputy Chairman of the Monetary Authority of Singapore, explained that the country cannot rest and must continue to innovate.
He said the country should, “look for ways to take advantage of new opportunities while remaining resilient in the face of emerging threats.”
Singapore needs to focus on creating new ways to generate revenue that can be leveraged in the private sector to support initiatives like climate change, where established revenue streams are and inclusive financing opportunities, where technology-based infrastructure can be. combined to provide new opportunities for the country’s financial markets.
The new system is expected to lead to economic growth of between 3,000 and 4,000 jobs each year, Deputy Prime Minister Wong explained.
He added, “If we do this right, our financial center will continue to be relevant and competitive, and become a major global financial hub that connects global markets, supports Asia’s development, and serves Singapore’s economy.”
It is encouraging that within its own insurance and reinsurance market, Singapore sees the transfer of risk to investors in capital markets as a still important area of growth, and shows the evolution of the ILS system and more opportunities for the international market to sell and invest in reinsurance risk. There.
Artemis plans to return to Singapore for the ILS Asia 2023 conference in July 2023. We will bring you the details as soon as the date is confirmed and hope to see many of our good friends from Singapore come.