Monetary Authority of Singapore plans consultation on protected cell company structure for captive insurance

In a speech at the first Asia Pacific Captive Forum in Singapore, the Monetary Authority of Singapore said it plans to consult on a Protected Cell Company, or PCC, structure to support captive insurance and related risk financing solutions. MAS framed the proposal as a way to make captive arrangements easier and cheaper to use, extending access beyond large multinationals to a wider range of companies. Under the proposed model, a PCC would operate as a single legal entity with a central core and legally segregated cells whose assets and liabilities are ring-fenced from one another and from the core. MAS said the structure could support "rent-a-captive" arrangements for smaller and mid-sized corporates, allowing them to run their own risk programmes in segregated cells while relying on a core sponsor for administration and captive management. For larger groups, it would allow risk coverage to be separated across business lines or geographies without creating multiple special purpose vehicles. MAS also said PCCs could support insurance-linked securities by helping sponsors transfer risks to capital markets more quickly and efficiently. In the same speech, MAS highlighted Singapore's existing captive market, with close to 90 captive insurers writing around SGD 2 billion of premiums, an average setup time of no more than three months, and what it described as streamlined and risk-proportionate captive requirements. MAS invited industry participants to share views on the proposed features when the public consultation is launched. The speech also said MAS is working with industry bodies on talent development for the next phase of growth in Singapore's captive insurance market.