Saturday, January 20, 2018

Singapore woos cat bond issuers with 100% grant

The Monetary Authority of Singapore (MAS) has unveiled a grant scheme aimed at encouraging insurers and reinsurers to issue catastrophe bonds in Singapore.

According to Lim Hng Kiang, Minister for Trade and Industry and deputy chairman of MAS, the central bank is ready to pay 100% of the upfront costs incurred in issuing catastrophe bonds out of the city-state.

The move is part of the Singapore’s efforts to have quick financing in the aftermath of disasters or catastrophic losses.

Lim told delegates at the 14th Singapore International Reinsurance Conference on Wednesday that the grant will run from 01 January 2018 and will be applicable to insurance-linked securities (ILS) bonds covering all forms of risks beyond just natural catastrophe risks.

He added that MAS is already working with key industry players, including IAG Re Singapore, in catastrophe bond insurance.

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