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Singapore is likely to maintain its position as the pre-eminent re/insurance hub in Asia, despite the emergence of rival centres in the region, according to Axco Insurance Information Services.
There are two distinct forces driving the Singapore market, which are diametrically opposed to each other, according to Axco’s latest report. The Competition Commission is active in trying to ensure personal lines business remains as affordable as possible. At the same time, the regulator is under pressure from international financial institutions to ensure the enhanced solubility of the market by introducing stricter solvency rules and enterprise risk management regimes, said Axco.
Offshore business increased in volume from $1.5 billion to $6.1 billion in the seven years to 2013 and much of this has been driven by reinsurance in the region, according to the data. Whilst the larger reinsurers maintain offices in other parts of Asia – Hong Kong, Shanghai, Kuala Lumpur and Labuan – Singapore remains the location of choice for a single Far East regional operation.
“The implementation of freedom of services across the 10 Association of Southeast Asian Nation (ASEAN) member states which is predicted to apply to re/insurance in the next few years will further boost an already strong market.”
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