Risk averse: Insurance premiums in Singapore rise by 7%

Demand is on the rise.

Singapore’s vision is to become a global insurance marketplace by 2020, with the ability to accept regional and global risks. It has currently built up significant expertise in specialty insurance, namely marine, energy, catastrophe, credit and political risks. Most Asian risks, including entire large reinsurance programmes and specialty risks, can be fully placed in Singapore.

According to MAS’ latest annual industry report, Singapore’s insurance market continued to grow strongly, with non-life gross premium rising 7% to reach $11.2 billion and life insurance total assets increasing by 2.9% to reach $142.5 billion in 2013. Further growth can be expected in tandem with increasing insurance demand in Asia.

Here’s more from MAS:

MAS has embarked on initiatives in four key areas:

• Increasing supply-side capacity

Aside from existing business lines, MAS is also keen to promote new business lines, such as cyber risks. MAS is working with the industry to create a test-bed for cyber risks where insurers and potential clients can come together to simulate loss events.

• Promoting insurance demand:

Facilitating greater cross-border access to regional markets, under the ASEANnfinancial services liberalisation process. 

Increasing the availability of Asian risk data to support robust pricing and risk modelling through the work of research institutions such as the Institute of Catastrophe Risk Management and the Insurance Risk and Finance Research Centre. MAS also established a Natural Catastrophe Working Group in October 2013 to develop Singapore’s catastrophe insurance capabilities. 

Increasing risk awareness in the region. Asia’s first association for risk managers, the Pan-Asian Risk and Insurance Management Association (PARIMA), was set up in Singapore in April 2013. PARIMA will serve as an important platform for dialogue between risk managers and the insurance industry.

• Developing a vibrant insurance marketplace
  • Developing an effective broker network.
     
  • Encouraging a true subscription market, where insurers not only share risks, but also expertise, in order to underwrite larger and more complex risks.
     
  • Creating more platforms to bring buyers and sellers together to share market knowledge and negotiate renewals
     
• Fostering a conducive business environment

The Insurance Talent Development Framework, which maps out training and career progression pathways for insurance professionals, was introduced in 2013. In line with this, the Singapore College of Insurance will be launching a spectrum of new training and development programmes to better meet the needs of industry players.