MAS offers funding help to boost issuing of catastrophe bonds

Singapore

TO provide financing quickly in the aftermath of regional disasters or catastrophic losses, Singapore has moved to develop alternative risk transfer mechanisms such as insurance-linked securities (ILS) and government pools.

As a start, the Monetary Authority of Singapore (MAS) will fund 100 per cent of the upfront costs incurred in issuing catastrophe bonds - assets that pay insurers if they suffer cataclysmic losses - out of Singapore.

Minister for Trade and Industry (Trade) Lim Hng Kiang, who is also Deputy Chairman of MAS announced this on Wednesday morning at the 14th Singapore International Reinsurance Conference, adding that the grant will run from Jan 1, 2018, and will be applicable to ILS bonds covering all f…