SIRC: Opportunity knocks for Singapore to serve Southeast Asia’s growing protection needs

November 4 2025 by

Opportunities for serving the protection needs in Southeast Asia will continue to expand due to a large and growing middle class, a growing physical capital stock as economies industrialise and urbanise, and from increasing climate stress, Chia Der Jiun, managing director of the Monetary Authority of Singapore (MAS), told delegates on the opening day of the Singapore International Reinsurance Conference.

“Singapore’s insurance market has grown with the region’s protection needs. The industry saw robust growth over the past five years, 2019 to 2024, employing a workforce of around 19,000 individuals over this period,” he said in his keynote address at the Sands Expo & Convention Centre in Singapore.

According to Chia, total life, general insurance and reinsurance premiums grew at an average of over 8% annually to reach about SG$78 billion (US$59.85 billion) at the end of last year.

“Leading global insurance players are anchoring high-value-adding capabilities and activities in Singapore,” he added.

“Insurers are growing their headquarters or regional functions in Singapore, driven by structural and strategic considerations.

“Specialty insurance lines and reinsurance capacity are growing to cover large and complex risks in this region.

“Global brokers are also accurate capabilities in analytics and advisory, risk modeling, and sustainability in Singapore.”

Chia highlighted three specific areas of opportunity where MAS hoped to further collaborate with the industry, namely harnessing AI and data, infrastructure financing opportunities in the region and growing need for climate risk coverage.

‘A complementary role’

He added that MAS would continue to support the growth of the mainstream insurance market to service the region’s needs.

“We support international insurers and reinsurers to scale capacity and deepen their operations and underwriting expertise here, undergirded by a robust regulatory framework that facilitates innovation,” he added.

“At the same time, the alternative risk transfer market can play a complementary role. The alternative risk transfer market expands the overall capacity and strengthens resilience to large-scale shocks.

“Insurance-linked securities are increasingly being used to allow capital market participants to share the risk of insurance perils.”

Compared to the US, where ILS has become an important source of risk capacity, particularly to help manage the financial impact of hurricanes, the market in Asia remains nascent, he added.

“The current ILS penetration in the region is modest, with limited issuance and adoption by insurers, reinsurers, and investors,” he said.

“Singapore’s deep and diverse risk management ecosystem allows us to serve as a regional center for risk financing and alternative capital.”

“ILS also provides a way to align investments with climate-resilient goals, making it an increasingly attractive investment in Asia's growing focus on green finance and sustainability.”

Chia Der Jiun, Monetary Authority of Singapore

MAS has supported the issuance of 29 catastrophe bonds to date, covering perils such as storms, earthquakes, and floods globally and in the region, according to Chia.

“As financial markets in the region continue to grow, the potential investor base for ILS is broadening,” he added.

“ILS provides attractive, stable returns that are typically uncorrelated with other asset classes.

“This makes it an attractive instrument for institutional investors to seeking to diversify their portfolios in the region.

“ILS also provides a way to align investments with climate-resilient goals, making it an increasingly attractive investment in Asia’s growing focus on green finance and sustainability.”

With climate risk growing globally, including in Asia, MAS expects continued momentum in the growth of ILS alongside reinsurance capacity in the region, with more countries and businesses seeking greater protection from catastrophic risks.

“Hence, to support the growing demand for risk transfer solutions, particularly in Asia, MAS has refreshed the ILS grant scheme to offset issuance costs,” Chia added.

“To encourage broader market participation and innovation, we will extend our support to cover non-APAC risks and renewals, while continuing to prioritize support for insurers that directly address protection needs within the APAC region.

“MAS will also work with the industry to attract and catalyze demand for ILS in Singapore.

“We welcome sponsors and asset managers and owners that are keen to establish ILS structuring or investment teams here to engage MAS directly.”

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