MAS consults on lower insurer capital charges and commits SGD 30 million to infrastructure investment capabilities

In remarks at the Singapore International Reinsurance Conference, Monetary Authority of Singapore (MAS) Deputy Chairman and Minister for National Development Chee Hong Tat announced a consultation on lower capital charges for insurers’ infrastructure and securitisation investments. MAS will also set aside SGD 30 million under the Financial Sector Development Fund to develop insurers’ infrastructure investment capabilities in Singapore. The funding will help cover dedicated investment teams, staff training and professional services needed to establish or expand these activities. The proposed changes to the Risk-Based Capital 2 Framework would extend preferential treatment to rated qualifying infrastructure debt and recognise additional safeguards that justify lower charges for qualifying infrastructure debt and equity. These include stable contractual or regulated revenues, strong counterparties and protection against market volatility. Senior, liquid securitisations meeting simplicity, transparency and standardisation criteria would also attract lower charges. The proposals build on differentiated treatment for qualifying infrastructure investments that took effect on March 31, 2026. MAS will recognise more external credit assessment institutions with relevant expertise and is developing standardised disclosures, assessment guidance and fund-manager declarations to help insurers evaluate qualifying investments while maintaining due diligence. Separately, an industry group is developing a Singapore-based data centre insurance facility with USD 200 million in initial capacity. The facility would pool underwriting capacity and specialist expertise to address fragmented coverage for the region’s expanding data centre sector. It is expected to cover construction and operational exposures, including design, supply chain and cyber risks, and scale up over time.