Catastrophe bonds raise Singapore's profile as hub for alternative risk

Singapore

SINGAPORE'S efforts to develop into a global capital for alternative risk transfer are bearing fruit, particularly in the area of catastrophe bonds. Since 2019, six cat bond issuances worth a combined US$488 million in terms of capital raised are domiciled in Singapore.

Simon Goh, Rajah & Tann's head of insurance and reinsurance, has advised on all six issuances. He is optimistic about the growth prospects for such insurance-linked securities (ILS). Investor interest in alternative asset classes which are uncorrelated to traditional markets has grown, amid the market upheaval caused by the Covid-19 pandemic.