top of page
  • a22162

Setting up an Insurance Company

Updated: Aug 13, 2023

Why Set up an Insurance Company in Singapore


There are many reasons why you might want to set up an insurance company in Singapore. Here are some of the most important:

  • Singapore is a leading financial hub in Asia. The city-state has a well-established financial regulatory framework and a strong track record of attracting foreign investment. This makes it an ideal place to set up an insurance company that wants to reach a regional or global audience.

  • Singapore has a highly skilled workforce. The city-state has a strong education system and a large pool of talented professionals. This makes it easy to find the staff you need to run a successful insurance company.

  • Singapore has a low corporate tax rate. The corporate tax rate in Singapore is just 17%, which is one of the lowest in the world. This can save you a significant amount of money on your taxes.

  • Singapore is a stable and business-friendly environment. The city-state has a stable political system and a strong rule of law. This makes it a safe place to do business and invest your money.

  • Singapore is a global transportation and communications hub. The city-state is well-connected to the rest of the world by air, sea, and telecommunications. This makes it easy to reach your customers and partners wherever they are located.

If you are considering setting up an insurance company, Singapore is a great place to do it. The city-state offers a number of advantages that can help you succeed in this competitive industry.


Here are some additional specific reasons why setting up an insurance company in Singapore is a good idea:

  • The Singapore insurance market is growing rapidly. The Singapore insurance industry is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2022 to 2027. This growth is being driven by a number of factors, including the increasing affluence of the Singaporean population, the growing demand for insurance products and services, and the government's efforts to promote the insurance industry.

  • The Singapore government is supportive of the insurance industry. The Singapore government is committed to developing the insurance industry as a key pillar of the country's economy. The government has implemented a number of policies and initiatives to support the growth of the insurance industry, such as providing tax incentives and grants to insurance companies.

  • Singapore has a well-regulated insurance industry. The Singapore insurance industry is regulated by the Monetary Authority of Singapore (MAS). MAS is a highly respected financial regulator that has a reputation for being fair and transparent. This helps to ensure that the insurance industry in Singapore is stable and well-managed.

If you are looking to set up an insurance company, Singapore is a great place to do it. The city-state offers a number of advantages that can help you succeed in this competitive industry.




Setting up an Insurance Company


Setting up an insurance company in Singapore is a complex process that requires careful planning and execution. The following are the key steps involved:

  1. Obtain the necessary approvals from the Monetary Authority of Singapore (MAS). MAS is the regulatory body for the insurance industry in Singapore. Before you can set up an insurance company, you will need to obtain a license from MAS. The licensing process is rigorous and requires you to meet a number of requirements, such as having a minimum paid-up capital of S$5 million for life insurance companies and S$10 million for non-life insurance companies.

  2. Choose a company structure. There are two main types of company structures that you can choose from when setting up an insurance company in Singapore: a public company or a private company. Public companies are listed on the Singapore Stock Exchange and are subject to more stringent regulations than private companies. Private companies are not listed on the stock exchange and have more flexibility in terms of their operations.

  3. Appoint key personnel. You will need to appoint a chairman, directors, and other key personnel to your insurance company. These individuals must meet the fit and proper requirements set by MAS.

  4. Develop your products and services. You will need to develop a range of insurance products and services that meet the needs of your target market. You will also need to put in place a robust risk management framework to protect your company from financial losses.

  5. Obtain a business registration from ACRA. After you have obtained the necessary approvals from MAS, you will need to obtain a business registration from the Accounting and Corporate Regulatory Authority (ACRA). ACRA is the government agency responsible for registering businesses in Singapore.

  6. Set up your office and IT systems. You will need to set up an office and IT systems to support your insurance business. Your office should be located in a central business district and should be equipped with the necessary furniture and equipment. Your IT systems should be able to handle the processing of insurance claims and the management of your customer data.

  7. Market your products and services. Once you have set up your insurance company, you will need to start marketing your products and services to potential customers. You can market your products through a variety of channels, such as advertising, public relations, and direct marketing.

Setting up an insurance company in Singapore is a challenging but rewarding experience. If you are prepared to put in the hard work and meet the necessary requirements, you can be successful in this competitive industry.


Here are some additional tips for setting up an insurance company in Singapore:

  • Hire experienced professionals to help you with the licensing process and the day-to-day operations of your company.

  • Make sure you have a strong financial backing to support your business.

  • Be prepared to invest in marketing and advertising to reach your target market.

  • Stay up-to-date with the latest industry regulations and trends.

  • Build strong relationships with your customers and partners.

With careful planning and execution, you can set up a successful insurance company in Singapore.




Insurance Licence Application


Insurance


Insurers are licensed and governed under the Insurance Act (Cap. 142) ("IA").


Insurers may carry on insurance business in Singapore as licensed insurers or foreign insurers:


  • Licensed insurers can carry on direct life and/or general business, life and/or general reinsurance business or captive insurance.

  • Foreign insurers are approved under the law of another country/territory to carry on insurance business in that country/territory. Foreign insurers carry on insurance business in Singapore under a foreign insurer scheme. Currently there are two foreign insurer schemes in Singapore: The Lloyd's Scheme and the Lloyd’s Asia Scheme.


Authorised reinsurers and Approved Marine, Aviation and Transit ("MAT") insurers do not have a physical presence in Singapore. They are established outside Singapore and provide insurance services from outside Singapore to persons in Singapore.


Authorised reinsurers can carry on the business of providing the reinsurance of liabilities under insurance policies to persons in Singapore. They can carry on life reinsurance and/or general insurance business.


Approved MAT insurers do not write insurance business, other than the collection or receipt of premiums in relation to MAT insurance business.


Authorised reinsurers and approved MAT insurers are subject to limited oversight by MAS as compared to an insurer which has a physical or commercial presence in Singapore and is licensed with MAS to carry on insurance business pursuant to the IA. Among others, authorised reinsurers and approved MAT insurers are not required to set up and maintain separate insurance funds for policies taken out by persons in Singapore or comply with solvency margin requirements.

Particulars to be Furnished by Applicant

The particulars that must be furnished by the applicant are as follows:


  1. name of the applicant;

  2. registered address of the applicant;

  3. the latest audited balance-sheet, profit and loss statement and other financial statements of the applicant;

  4. name and correspondence address of the the applicant;

  5. the shareholding structure of the applicant;

  6. the types of insurance business proposed to be underwritten by the applicant;

  7. the organisation chart of the applicant;

  8. the name and the designation of the person whom the proposed chief executive officer of the applicant will report to;

  9. the names and experience of the underwriters to be employed by the applicant in Singapore.



How Bestar can Help


Bestar is a leading corporate services provider in Singapore. We can help you set up an insurance company in Singapore by providing the following services:

  • Advise on the regulatory requirements. We will advise you on the regulatory requirements for setting up an insurance company in Singapore. This includes the requirements for obtaining a license from the Monetary Authority of Singapore (MAS), as well as the requirements for company formation and corporate governance.

  • Assist with the company formation process. We will assist you with the company formation process, including preparing the necessary documentation and filing the necessary paperwork with ACRA.

  • Provide corporate secretarial services. We will provide you with corporate secretarial services, such as maintaining your company's register of members and directors, and filing your annual returns with ACRA.

We have a team of experienced professionals who can help you set up an insurance company in Singapore and make it a success. We understand the regulatory requirements for the insurance industry in Singapore and we have a proven track record of helping clients to set up and manage successful businesses in Singapore.


If you are looking to set up an insurance company in Singapore, we encourage you to contact us for a consultation. We would be happy to discuss your needs and how we can help you achieve your goals.


Here are some additional benefits of using Bestar to set up an insurance company in Singapore:

  • We have a deep understanding of the Singapore insurance market and the regulatory requirements for the industry.

  • We have a proven track record of helping clients to set up and manage successful businesses in Singapore.

  • We offer a wide range of services to help you with every aspect of setting up and running your insurance company, from company formation to accounting and tax compliance.

  • We are committed to providing our clients with the highest level of service and support.

If you are looking for a reliable and experienced partner to help you set up an insurance company in Singapore, Bestar is the right choice for you.


If you would like to know more, please contact Bestar.


Setting up an Insurance Company | Bestar
Setting up an Insurance Company | Bestar

Comments


bottom of page