MAS moves to spur infrastructure investments by easing capital requirements for insurers
In addition, a S$30 million grant will defray costs of building up teams and skills, engaging professional services
Singapore is considering easing capital requirements for insurers to invest in infrastructure and securitized assets, aiming to bolster the local infrastructure financing ecosystem. The Monetary Authority of Singapore (MAS) plans to lower capital charges for certain infrastructure debt and equity investments, provided they meet specific credit quality and other qualifying conditions.
A S$30 million grant will support insurers in building infrastructure investment capabilities and acquiring necessary skills and professional services. MAS will also recognize more external credit assessment institutions with relevant expertise in infrastructure and securitisation, providing insurers access to a broader range of qualifying debt instruments.
The regulator is working with the industry to develop standardized disclosure templates and assessment guidance to assist insurers in evaluating whether infrastructure investments qualify for lower capital charges. These measures aim to address the modest allocation of insurers' investable assets to infrastructure, which currently stands at around 1 to 2 percent.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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