MAS earmarks S$30 million to build insurers’ infrastructure investment skills
Proposed capital-rule changes would also reduce requirements for qualifying investments, with public consultation running from Nov 2 to Dec 18.
Singapore’s central bank will allocate S$30 million to help insurers develop the expertise needed to invest in infrastructure, including electricity grids and data centres. National Development Minister Chee Hong Tat announced the funding on Nov 2 at the 22nd Singapore International Reinsurance Conference.
The money will come from the Financial Sector Development Fund. It will offset expenses for insurers establishing specialist investment teams, training employees and hiring professional advisers to start or expand infrastructure investment activities in Singapore.
Chee, who also serves as deputy chairman of the Monetary Authority of Singapore (MAS), said ASEAN needs more than US$200 billion annually for infrastructure. He cited earlier studies putting such investments at around 1% to 2% of insurers’ assets, though that proportion has been rising. He said infrastructure income could help insurers meet long-term obligations to policyholders.
MAS is proposing reduced capital requirements for eligible rated infrastructure debt, with additional reductions possible for investments whose features lower risk, such as predictable revenue under contracts. Certain rated investments backed by asset pools could also qualify, subject to conditions covering repayment ranking, tradability and structural protections. The proposals are open for public comment from Nov 2 to Dec 18.
Chee also said industry participants are developing a data-centre insurance scheme based in Singapore with initial capacity of US$200 million. MSIG, Gallagher Re, SCOR, Samsung Re and the Cybersecurity Association Singapore are involved. Expected coverage includes construction, operations, supply chains, design and cyber risks.
Separately, the Singapore Reinsurers’ Association introduced a handbook on assessing artificial intelligence risks. It covers data and decision reliability, reliance on outside providers, and AI’s effects on coverage and claims decisions.
