SIRC 2026: MAS proposes reforms to boost insurer allocations to infrastructure

November 2 2026 by

Singapore wants the insurance industry to play a greater role in supporting the development of infrastructure across Asia, not just as underwriters of assets, but as providers of long-term patient capital, according to the Monetary Authority of Singapore (MAS). 

In a keynote address at the Singapore International Reinsurance Conference (SIRC) on Monday, Hong Tat Chee, minister for national development and deputy MAS chairman, said that the insurance industry has a vital role to play in supporting Asia’s rapid economic transformation beyond underwriting. 

“Across the region, significant investments are being made in energy infrastructure, cross-border power grids, subsea cables and data centres to support Asia’s growing energy and digital needs,” Chee said. 

“Developing and sustaining these large, complex and capital-intensive projects provides insurers with opportunities to play a bigger role beyond underwriting losses.” 

Chee noted that Asia faces significant financing challenges, with risks becoming “larger, more interconnected and more complex.”  

At the same time, the region also faces significant exposure to natural disasters, with a high proportion of economic losses remaining uninsured. 

Across Asean, more than US$200 billion of infrastructure investments are required annually, according to MAS, citing Asian Development Bank data. 

“Investments in infrastructure can be a natural fit for these balance sheets,” Chee added.  

“High-quality infrastructure assets can generate stable, long-term cash flows that align well with insurers’ long-dated liabilities, particularly those of life insurers. Insurers can participate both as asset owners and, through their asset management businesses, by originating, structuring and managing investments for other investors. 

“Yet insurer allocations to infrastructure remain modest. Past studies have placed infrastructure allocations at only around 1-2% of insurers’ assets, although these have been growing.” 

Given the current low take-up, even a modest increase in allocations to infrastructure would unlock significant capital for development, according to Chee. 

“This can reinforce Singapore’s broader infrastructure-financing ecosystem by connecting insurers with asset managers, banks, project sponsors, advisers and other sources of investment expertise.” Hong Tat Chee

Singapore wants to encourage the formation of an infrastructure financing ecosystem which allows insurance capital to be efficiently formed, deployed and recycled into infrastructure. 

To support the ambitions, the MAS unveiled plans at SIRC for several new initiatives following its unveiling in October last year of differentiated capital treatment for qualifying infrastructure investments under Singapore’s risk-based capital 2 (RBC 2) framework, which came into force at the end of March. 

The MAS is now proposing three new enhancements to RBC 2 for public consultation, including broadening the scope of infrastructure debt that can benefit from lower capital changes. 

“Today, unrated qualifying infrastructure debt has a lower capital charge compared to an unrated corporate debt,” Chee said.  

“We propose to apply the same treatment for rated qualifying infrastructure debt, subject to appropriate conditions, to make it more attractive for insurers to invest in such instruments.” 

MAS will also recognise more risk mitigating features which will allow a reduction in capital charges for qualifying infrastructure debt, such as stable contractual or regulated revenues, strong counterparties and other safeguards that reduce exposure to market volatility. 

Singapore is also proposing making the capital treatment for rated securitisations more risk sensitive, which would encourage insurers to invest in high quality, lower risk securitisations that suit their requirements and enable originators to recycle capital, according to Chee. 

“Securitisation can help connect a broader range of assets with institutional capital and allow capital to be recycled into new investments,” Chee said. “Recognising that securitised assets have varying risk profiles, we propose to lower capital charges for securitised assets that are senior, liquid and which meet criteria for simplicity, transparency and standardisation.” 

To support the development of an infrastructure financing ecosystem, the MAS plans to set aside SG$30 million (US$23.5 million) under its Financial Sector Development Fund to support insurers in building infrastructure investment capabilities in Singapore, including setting up dedicated investment teams locally. 

“This can reinforce Singapore’s broader infrastructure-financing ecosystem by connecting insurers with asset managers, banks, project sponsors, advisers and other sources of investment expertise,” Chee said.  

“Taken together, these measures reflect MAS’ broader objective to make insurers stronger partners in Singapore’s growth-capital ecosystem. Not only protecting the infrastructure that supports Asia’s growth but helping to finance it.” 

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