Singapore has attracted many international insurers and reinsurers and has become a leading insurance centre. Its attractions include:
stable political situation pro-business environment sound regulatory framework skilled and educated workforce excellent infrastructure strategic location with connections to all parts of Asia, Australia and New Zealand.
The market is made up of local and foreign-owned companies. Foreign insurers, which comprise companies incorporated in Singapore and branch offices, include the major multinational groups of the US and Europe and several Japanese and Australian insurers.
Although there has been some merger and acquisition activity, there is no real move towards the creation of broader financial services groups being seen.
The advantages mentioned above have made Singapore the largest domicile for captive insurers in Asia and 20 of the top 25 reinsurers globally are based there.
Additionally most of the top brokers are already present in Singapore. Offshore insurance business accounts for more than half of the total general insurance business written.
Singapore has attracted a critical mass of specialist insurers and reinsurers which have provided expertise and fresh capacity, however, a significant proportion of reinsurance volumes ceded outside domestic markets in Asia are presently not retained within Asia.
A number of factors may account for this and include the historical relationship that many insurers have with the London market and the more competitive terms and availability of capacity offered for larger, complex risks. There is certainly scope for further growth in this vibrant and attractive market.
Axco’s life and benefits Insurance Market Report on Singapore is in production following our consultant’s visit to the country. It will be published in the third quarter 2008. |
