Singapore’s Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong outlined plans to strengthen the capacity of the insurance and reinsurance sector, highlighting AI as one of the key areas for development.
Speaking at the 20th Singapore International Reinsurance Conference, Mr Gan said the introduction of AI has the potential to improve productivity and customer service.
Core operations such as underwriting and insurance claims processing may also be strengthened.
of Monetary Authority of Singapore (MAS) We are working in partnership with the following major insurance companies. Project MindForge Develop a risk framework for the responsible use of generative artificial intelligence (Gen AI) in insurance use cases such as AI-assisted underwriting and customer engagement.
This effort, powered by the Veritas Initiative, explores the risks and opportunities of Gen AI in financial services.
Mr. Gunn emphasized the importance of building a skilled workforce to support these advances.
He highlighted that MAS and the Banking and Finance Association had commissioned the creation of the Employment Transformation Map.
This will explore how Gen AI will broadly reshape job roles in finance and identify the skills needed for the future.
The results of the survey are expected to be published early next year.
Mr Gan also spoke about efforts to strengthen Singapore’s position as a reinsurance hub.
Singapore serves as the regional hub for 12 of the world’s top reinsurance companies, with 16 of the top 25 operating in the region.
This ecosystem is supported by a network of approximately 150 brokers and aims to drive the development of customized risk finance solutions for Asia.
Other efforts include support for parametric insurance to meet specialized coverage needs.
Mr Gan also noted Singapore’s involvement in government insurance programs such as the Southeast Asia Disaster Risk Insurance Facility (SEA-DRIF).
This facility provides local disaster risk insurance.
Additionally, partnerships with multilateral development banks were highlighted to facilitate catastrophe bond issuance and promote insurance-linked securities (ILS) as an attractive asset class.
MAS is also piloting differentiated risk capital treatment for insurers’ investments in sustainable infrastructure, with the aim of promoting green investments.
Featured image credit: Edited from freepic
