HONG KONG--(BUSINESS WIRE)--Singapore has bolstered its stance as a regional (re)insurance hub by developing its offshore insurance fund business, which has delivered significant growth and favorable results over the past decade, according to a new report by A.M. Best Co. The country continues to draw increasing numbers of reinsurers and underwriters to write risks across the region.
Singapore’s insurance market is comprised of the Singapore Insurance Fund (SIF), which governs Singapore policies for insurers, and the Offshore Insurance Fund (OIF), which governs offshore policies for insurers. Fundamentally, Singapore’s developed domestic market and established structures have paved the way for development of the country’s offshore business, which has been further encouraged by the government’s push to position the country as a financial services center. Traditional commercial risks across Asia, such as property, marine, cargo and hull, offer substantial prospects, while coverage for energy and oil, trade credit, financial and other casualty risks also represent growing areas. Reinsurance has been a major driver of offshore business growth in Singapore, with the expansion of international reinsurers and Asian participants.
Apart from 2011, which saw big catastrophe losses, the OIF has consistently delivered favorable financial performance. The OIF posted operating profit of SGD 715 million (USD 569 million) in 2012, compared with SGD 649 million for the SIF, according to the Monetary Authority of Singapore. Loss ratios for offshore business have ranged between 46% and 64% since 2008, except in 2011. This track record of favorable performance for the OIF presents positive prospects as Asian markets gain momentum, aided by the region’s low insurance penetration and economic development.
For the full report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=217917.
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