Reinsurance Brokers

Reinsurance Brokers | Bestar

Reinsurance Brokers in Singapore

These brokers offer a wide range of reinsurance services, including treaty placement, facultative placement, risk management consulting, and claims handling. They have a deep understanding of the Singapore market and the needs of local and international clients.

Reinsurance Brokers Licensing

Reinsurance brokers in Singapore are regulated by the Monetary Authority of Singapore (MAS). To obtain a license to operate as a reinsurance broker in Singapore, an entity must meet specific requirements outlined in the Insurance Act and the Insurance (Intermediaries) Regulations.   

Key Requirements for Reinsurance Broker Licensing in Singapore

1. Entity Type:

   • The entity must be incorporated in Singapore.   

     
     

2. Paid-up Capital:

   • A minimum paid-up capital of S$300,000 is required for each type of reinsurance broking activity (general reinsurance or life reinsurance).   

     
     

3. Professional Indemnity Insurance:

   • The entity must maintain professional indemnity insurance coverage of at least S$1 million for each type of reinsurance broking activity.   

     
     

4. Management Expertise:

   • The entity must have qualified individuals with relevant experience and expertise to manage the reinsurance broking business.

     
     

5. Track Record:

   • A strong track record in the insurance industry is preferred.   

     
     

6. Fit and Proper Criteria:

   • The entity, its directors, and key personnel must meet the MAS's fit and proper criteria, which includes assessments of their financial soundness, reputation, and integrity.   

     
     

7. Compliance Function:

   • The entity must establish and maintain a robust compliance function to ensure adherence to regulatory requirements.   

   
   

Reinsurance Broker License Application Singapore

To apply for a reinsurance broker license in Singapore, you'll need to follow the guidelines set forth by the Monetary Authority of Singapore (MAS). Here's a general overview of the process:

Application Process:

1. Prepare Required Documents:

   • A business plan outlining proposed activities

   • Financial statements and audited accounts

   • Information on the management team and key personnel

   • Evidence of compliance with regulatory requirements

   • Application forms (available on the MAS website)

     
     

2. Submit Application: Submit the completed application and supporting documents to the MAS.

   
   

3. MAS Review: The MAS will review your application and conduct due diligence.

   
   

4. License Issuance (if approved): Upon successful review, the MAS will issue the reinsurance broker license.

The MAS will review the application and conduct due diligence to assess the entity's suitability for a license. The entire licensing process can take several months.   

Additional Considerations:

• Reinsurance Brokers' Association (Singapore): Membership in the RBAS can provide valuable networking opportunities and access to industry best practices.   

• Regulatory Compliance: Adhere to MAS regulations and industry best practices. Ongoing compliance with MAS regulations is crucial to maintain the license and avoid penalties.

• Professional Standards: Adherence to high professional standards is essential to build trust and reputation in the market.

• General Insurance Association of Singapore (GIA): Membership in the GIA can provide valuable networking opportunities and access to industry best practices.

• Compliance Function: Establish a robust compliance function to ensure ongoing compliance.

By carefully following these steps and meeting these regulatory requirements, entities can successfully obtain a reinsurance broker license in Singapore and establish a strong presence in the region's dynamic insurance market.

Additional Tips:

• Engage with Industry Associations: Join relevant industry associations to network and stay updated on industry developments.

• Plan for Ongoing Compliance: Develop a comprehensive compliance program to manage regulatory risks.

Payment of Fees

Upon approval of an application for registration as a reinsurance broker, the Authority will issue an annual fee letter to the applicant, advising the applicant of the amount of annual fee payable. The annual fees for a full calendar year are as follows:

• General Reinsurance Broker - $5,000

• Life Reinsurance Broker - $2,500

• Combination of any of the above - Aggregate of the relevant amounts above

For the latest guidelines, forms, and updates, you can refer to the MAS website:

https://www.mas.gov.sg/regulation/insurance/insurance-broker-registration-and-approval

How Bestar can Help

Bestar can assist reinsurance brokers in several key areas, primarily focusing on the administrative and compliance aspects of their business:

1. Company Incorporation and Registration:

• Bestar can guide reinsurance brokers through the complexities of setting up a company in Singapore, including registration with the Accounting and Corporate Regulatory Authority (ACRA).   

• We can ensure compliance with the Monetary Authority of Singapore's (MAS) regulations for insurance brokers, which are crucial for operating legally in the sector.

2. Corporate Secretarial Services:

• Bestar can manage essential corporate secretarial tasks, such as organizing company meetings and maintaining statutory records, allowing reinsurance brokers to focus on their core business.   

• We can help reinsurance brokers adhere to all legal and regulatory requirements, reducing the risk of non-compliance.

3. Accounting and Financial Services:

• Bestar can provide accounting, bookkeeping, and financial reporting services tailored to the specific needs of reinsurance brokers.   

• We can assist with financial audits, tax advisory, and compliance, ensuring accurate financial management and adherence to industry standards.   

4. Business Advisory and Consulting:

• Bestar can offer valuable business advisory and consulting services, helping reinsurance brokers navigate the challenges of the industry.   

• We can provide insights on risk management, regulatory changes, and market trends, enabling brokers to make informed decisions.

5. HR & Payroll Outsourcing Services:

• Bestar can manage HR and payroll functions, allowing reinsurance brokers to streamline their operations and focus on core business activities.   

• We can handle employee onboarding, payroll processing, and compliance with labor laws, reducing administrative burdens.   

By outsourcing these essential services to Bestar, reinsurance brokers can benefit from:

• Expertise: Bestar has specialized knowledge in company incorporation, compliance, accounting, and business advisory, ensuring high-quality service.   

• Time Savings: Reinsurance brokers can free up valuable time by delegating administrative tasks to Bestar, allowing them to focus on client relationships and business growth.

• Cost-Effectiveness: Outsourcing can be more cost-effective than maintaining in-house staff for these functions, reducing overhead expenses.   

• Compliance: Bestar can help reinsurance brokers stay compliant with ever-changing regulations, minimizing the risk of penalties and legal issues.

Overall, Bestar can be a valuable partner for reinsurance brokers, providing comprehensive support in various aspects of their business operations.   

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