Singapore's MAS Consults on New Structures for Insurance-Linked Securities

The Monetary Authority of Singapore has opened a consultation on new structures intended to strengthen the city-state's position as a regional centre for insurance-linked securities and alternative risk transfer. The proposals include a protected cell company framework and a collateralised reinsurance structure, tools that allow risk to be segregated and financed through capital markets rather than traditional reinsurance alone. Protected cell companies enable separate 'cells' to ring-fence assets and liabilities for different transactions within a single legal entity, making it easier and more cost-effective to issue instruments such as catastrophe bonds. By refining its framework, the regulator aims to attract more issuance and support insurers and reinsurers seeking to transfer catastrophe and other risks to investors. The move reflects growing global interest in insurance-linked securities as extreme-weather losses mount and as sponsors look for additional sources of capacity beyond conventional reinsurance. It also complements Singapore's broader ambitions in risk financing and its established grant schemes for catastrophe bond issuance. Industry participants are invited to provide feedback before the framework is finalised, shaping how competitive Singapore's offering becomes.