Captive insurance forms an important part of Singapore’s offering as a global capital for Asian risk transfer, according to a spokesperson at the Monetary Authority of Singapore (MAS).
Singapore currently has 76 captive insurers active in the state. It recently extended the Insurance Business Development Scheme for Captive Insurance (IBD-CI) to 31 December 2025, which it said supported the state’s value proposition as a full service risk financing hub.
IBD-CI offers successful applicants a 10 percent concessionary tax rate for five years on qualifying income, subject to applicants demonstrating plans of having anchored and grown their operations in Singapore.
Applicants are subject to annual reviews which take into consideration headcount growth in key functions and expansion in business activities. MAS is currently working out the details of the changes which will be ready in May, 2020, as announced at this year’s budget. No further details are currently available.
The spokesperson said: “Singapore is home to many large multinational corporations and global Fortune 500 companies. Such large enterprises set up captive insurance companies to insure against business risks, as a strategic option in their group risk management approach.”
Monetary Authority of Singapore, MAS, Insurance Business Development Scheme for Captive Insurance