Singapore’s Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, outlined plans to strengthen the capabilities of the insurance and reinsurance sector, highlighting AI as one of the key areas for development.
Speaking at the 20th Singapore International Reinsurance Conference, Gan noted that adopting AI could improve productivity and customer service.
It could also enhance core operations such as underwriting and claims processing.
The Monetary Authority of Singapore (MAS) is working in partnership with leading insurers under Project MindForge to develop a risk framework for the responsible use of Generative Artificial Intelligence (Gen AI) in insurance use cases, including AI-assisted underwriting and customer engagement.
This initiative, driven by the Veritas Initiative, examines the risks and opportunities of Gen AI for financial services.
Gan underscored the importance of building a skilled workforce to support these advancements.
He highlighted that MAS and the Institute of Banking and Finance have commissioned a Jobs Transformation Map.
This will explore how Gen AI will reshape job roles in the financial sector broadly and identify the skills needed for the future.
The findings are expected to be published early next year.
Gan also spoke about efforts to reinforce Singapore’s position as a reinsurance hub.
Singapore serves as the regional base for 12 top global reinsurers, with 16 of the top 25 operating in the region.
This ecosystem is supported by a network of about 150 brokers and aims to drive the development of tailored risk financing solutions for Asia.
Other initiatives include supporting parametric insurance to meet specialised coverage needs.
Gan also mentioned Singapore’s involvement in sovereign insurance programs, such as the Southeast Asia Disaster Risk Insurance Facility (SEA-DRIF).
This facility provides disaster risk insurance for the region.
Additionally, partnerships with multilateral development banks were highlighted to facilitate catastrophe bond issuances and promote insurance-linked securities (ILS) as an attractive asset class.
MAS is also piloting a differentiated risk capital treatment for insurers’ investments in sustainable infrastructure, aiming to encourage green investments.
Featured image credit: Edited from Freepik
