Singapore

Principal Legislation

• Insurance Act 1967 (as amended)
  Regulates licensing, solvency, reporting, and business conduct for life and general insurers.
• Motor Vehicles (Third Party Risks and Compensation) Act 1960
  Mandates compulsory third-party motor liability coverage.
• Work Injury Compensation Act 2008
  Requires employers to insure against workplace injuries, occupational illnesses, or fatalities.
• Marine Insurance Act 1906
  Governs contracts of marine insurance, including disclosure, indemnity, and insurable interest.
• Insurance (Valuation and Capital) (Amendment) Regulations 2012
  Sets capital adequacy and valuation standards for licensed insurers.
• Deposit Insurance and Policy Owners’ Protection Scheme (Amendment) Regulations 2012
  Provides policyholder protection in the event of insurer insolvency under the Policy Owners’ Protection Scheme.
• Financial Institutions (Miscellaneous Amendments) Act 2024
  Came into effect in 2025, expanding the Monetary Authority of Singapore’s powers to supervise, inspect, and enforce insurance regulations in line with cross-sector financial oversight.

The Monetary Authority of Singapore (MAS) administers all legislation.

Supervision

The Monetary Authority of Singapore (MAS) serves as both the central bank and the integrated financial regulator. MAS is responsible for supervising and regulating all insurance and reinsurance companies operating in Singapore, including captives and reinsurance brokers. It also oversees direct insurance brokers but does not regulate insurance agents, who are governed by the insurers they represent.

MAS administers the relevant statutes covering the financial sector, including those relating to money, banking, insurance, and securities, ensuring sound risk management and consumer protection across the insurance ecosystem. Industry Associations

• General Insurance Association (GIA) – Represents the non-life insurance sector.
• Life Insurance Association of Singapore (LIA) – Represents life insurers in Singapore.
• Singapore Reinsurers’ Association (SRA) – Represents the reinsurance industry.
• Singapore Insurance Brokers’ Association (SIBA) – Represents general and reinsurance brokers.
• Reinsurance Brokers’ Association (Singapore) – Represents firms focusing on reinsurance broking.

Admitted/Non-Admitted

Under Singaporean law, non‑admitted insurance is generally not permitted. All insurance risks located within Singapore must be placed with insurers licensed and authorised by MAS, especially for classes compulsory by law (e.g. motor third-party, workers’ compensation).

There is currently no general legal prohibition against foreign placing across all insurance classes. However, obligatory non‑life classes mandated by law must be placed locally by a licensed insurer.

For reinsurance, Singapore imposes no such restriction. Insurers may freely cede reinsurance to foreign or non‑admitted reinsurers, as long as they comply with MAS credit rating requirements, counterparty limits, and risk management guidelines.

Compulsory Classes

• Motor third party bodily injury.
• Personal accident (PA) for passengers of public land transportation operators and operators of ferries.
• Workers’ compensation (state scheme).
• Professional indemnity for insurance and reinsurance brokers.
• Public liability covers for businesses and condominiums (but only in some municipalities, notably Makati).
• Defined insurance coverage for Overseas Foreign Workers (OFWs)
• National health (state scheme).
• In July 2012 a draft private member’s bill was under consideration to introduce a compulsory insurance requirement for operators of public transport services. It has not yet been passed into law.

State Involvement

There are no state-owned insurance or reinsurance companies operating in Singapore. The insurance sector is fully privatized and open to foreign participation. All insurers and reinsurers, whether local or international, operate under the regulatory oversight of the Monetary Authority of Singapore (MAS). The government does not maintain or sponsor any insurance provider in the market.

Tariff Classes

There are no statutory tariffs governing either the life or non-life insurance markets in Singapore. Insurers are free to set their own premium rates and terms, subject to regulatory requirements on fair pricing and market conduct enforced by the Monetary Authority of Singapore (MAS).

Premium Taxes and Charges 

An 8% GST applies to most non-life insurance premiums, except for travel and MAT insurance.

Life insurance premiums is exempt from GST and other policy taxes.

Policy Language

All insurance policies in Singapore must be issued in English, as required by local regulations.

Singapore continues to strengthen its position as a leading reinsurance and insurance hub in Asia. The government encourages insurers to retain business locally and supports offshore activity through a concessionary corporate tax rate of 10% on qualifying Offshore Insurance Fund (OIF) business.

The market is predominantly proportional in its reinsurance arrangements, with minimal shift toward non-proportional structures such as excess of loss.

Singapore hosts a robust reinsurance sector with 29 registered professional reinsurers maintaining a physical presence. These include 17 general, 3 life, and 9 composite reinsurers. An additional 6 authorised reinsurers operate without a local office but are permitted to write business in the market.

There are also two domestic reinsurers operating in Singapore.

Brokers and agents are the primary distribution channels in Singapore’s insurance market. However, insurers are increasingly adopting direct marketing, digital platforms, and bancassurance to reach customers more efficiently.

In the life insurance sector, tied agents still largely dominate distribution.

Singapore is not located in a seismically active zone, though mild tremors may occasionally be felt from distant regional quakes. The country is also not prone to severe windstorms, with only occasional squalls occurring.

Flood risk is managed through advanced infrastructure, including the Marina Bay Barrage, which has significantly reduced the threat of major flood losses. There have been no significant natural catastrophe losses in the past 15 years.