The Monetary Authority of Singapore (MAS) has identified three key areas of opportunity where the regulator hopes to further collaborate with the insurance industry, according to MAS’s Managing Director Chia Der Jiun.
The areas are: harnessing AI and data; infrastructure financing opportunities in Asia; and the growing need for climate risk coverage.
Mr Chia highlighted this in his official keynote address at the 21st Singapore International Reinsurance Conference 2025 on 3 November 2025.
AI and data
MAS is partnering with the financial industry to support AI adoption and the anchoring of AI capabilities in Singapore. Over 30 financial institutions (FIs) have established AI functions in Singapore, including insurers. A number of Singapore-based AI hubs also operate as their Global AI Competency Centres. For example, Prudential’s global AI Lab integrates AI capabilities to drive predictive analytics and hyper-personalised customer engagement in its operations, services and products. MAS looks forward to partnering with more insurers to build up their AI capabilities and competency centres here in Singapore.
At the same time, MAS is enabling broad AI adoption through the Pathfinder Programme – PathFin.ai. This programme enables knowledge-sharing among participants. It creates a library of validated use-cases, proven solutions and implementation best practices. This reduces the time and effort for FIs to identify, select and effectively implement AI solutions. This collaborative initiative started with 20 FIs in the middle of this year, and has grown rapidly to over 100 participating FIs.
In this connection, the PathFin.ai Knowledge Hub was launched in early October 2025. It helps FIs to discover how their peers are applying AI, and receive guidance on AI skills and workforce transformation.
As AI adoption scales, MAS is developing supervisory guidelines to establish clear expectations for AI risk management. This will cover oversight of AI risks, including risk management systems, policies and procedures, and AI life cycle controls. Through an industry consortium, Project Mindforge, MAS works with partner FIs, including some insurers, to develop an AI risk management handbook to guide responsible AI deployment.
Infrastructure financing opportunities in the region
The needs for infrastructure investments in Asia are vast and diverse, and span the range of renewable energy projects, grid upgrades, urban development, transportation networks and climate-resilient infrastructure. Insurers hold significant investment capacity and balance sheets, and the long duration of infrastructure investments match well with the longer-term liabilities of life insurers.
MAS intends to partner the industry to further the region’s infrastructure needs by firstly, providing for differentiated capital treatment for qualifying infrastructure investments; and secondly, by introducing a time-bound pilot to provide some capital relief even for certain non-qualifying infrastructure investments.
Growing need for climate risk coverage
With the increase in frequency of high impact disaster events, there is an increasing need to ensure that there is the right capacity to meet protection needs. Governments and businesses are increasingly sensitised to the need for protection against these risks. As a result, there is a growing need for risk coverage, including in climate events.
MAS supports international insurers and reinsurers to scale capacity and deepen their operations and underwriting expertise here, undergirded by a robust regulatory framework that facilitates innovation.
Insurance-linked securities (ILS) are increasingly being used to allow capital market participants to share the risks of insurance perils. Singapore’s deep and diverse risk management ecosystem allows it to serve as the regional centre for risk financing and alternative capital. MAS has supported the issuance of 29 catastrophe bonds to date, covering perils such as storms, earthquakes and floods globally and in the region.
To support the growing demand for risk transfer solutions, particularly in Asia, MAS has refreshed the ILS Grant Scheme to offset issuance costs. To encourage broader market participation and innovation, MAS will extend its support to cover non-APAC risks and renewals, while continuing to prioritise support for issuances that directly address protection needs within APAC.
“MAS will also work with the industry to attract and catalyse demand for ILS in Singapore. We welcome sponsors and asset managers and owners that are keen to establish ILS structuring or investment teams here to engage MAS directly,” said Mr Chia. M