Singapore Introduces Grant Scheme to Boost Insurance-Linked Securities Market

Insurance-linked securities (ILS) are gradually gaining traction in the Asia-Pacific region, though the market remains relatively nascent. To stimulate growth, the Monetary Authority of Singapore (MAS) plans to introduce a new ILS grant scheme running until December 2028. This program will subsidize up-front issuance costs for a broad spectrum of ILS products, including natural catastrophe, longevity, mortality, operational, and cyber risks. The grant offers up to 70% cost coverage (capped at S$1 million) for new property catastrophe bonds with Asia-Pacific risk exposure.