Insurance companies in Singapore fall under the regulations of the Monetary Authority of Singapore (MAS) and are governed by the Insurance Act. The insurance legislation recognizes insurers, reinsurers, agents and brokers who can act as insurance intermediaries. Insurers can act as licensed or foreign insurers in Singapore. While licensed insurance companies can provide direct life, general reinsurance and captive insurance services, foreign companies will fall under the Lloyd’s Scheme and Lloyd’s Asia Scheme for providing their services.
Our specialists in company formation in Singapore can provide you with information about the schemes for foreign insurance companies operating in the city-state.
The video below shows the main steps to open an insurance business in Singapore:
Foreign investors seeking to open a company in Singapore in the insurance/reinsurance field, must fulfill several conditions. Among these, they must have a minimum share capital which depends on the services they provide:
Licensed reinsurers must deposit a minimum share capital of 25 million SGD, with a minimum 2 million SGD for each class of reinsurance service provided.
Insurance companies in Singapore must also have a capital which will be kept for risk exposure purposes. This capital is known as the Total Risk Requirements (TRR) and is calculated based on a formula released by MAS. Also, the company must be registered with the responsible local authority.
Our Singapore experts can assist you with the registration of the insurance company with the Accounting and Corporate Regulatory Authority (ACRA).
Opening an insurance company in Singapore implies selecting a type of entity and registering it with ACRA. Our experts in company formation in Singapore can assist foreign investors with the preparation of the incorporation documents. It is important to know that an insurance company must have a chairman and an appointed actuary in the case life insurers or a certifying actuary in the case of non-life insurers. The chairman, directors and other executives in the company must pass the MAS’ fit and proper test.
For complete information about setting up an insurance company in Singapore, do not hesitate to contact our local representatives.