The Monetary Authority of Singapore has issued a consultation paper proposing a legislative framework for a new Protected Cell Company corporate structure. The proposal is intended to support alternative risk transfer solutions by allowing multiple insurance arrangements to sit within a single legal entity while keeping the assets and liabilities of each arrangement legally segregated. Under the proposed model, a Protected Cell Company would comprise a central core and one or more distinct cells. This is meant to address a limitation in Singapore’s current corporate structures, which require separate legal entities such as special purpose vehicles to ringfence capital, assets and liabilities for each risk programme or coverage. MAS said the new structure would lower setup and operating costs and improve operational efficiency for initial use cases including captive insurance, insurance-linked securities and sovereign risk pools. For captives, it would support dedicated and rent-a-captive models. For insurance-linked securities, it would allow separate issuances through individual cells without creating a new vehicle for each transaction, which could make smaller or more bespoke transactions more viable. The consultation runs until 7 August 2026.
Monetary Authority of Singapore2026-07-07
Monetary Authority of Singapore launches consultation on Protected Cell Company framework for alternative risk transfer
The Monetary Authority of Singapore is consulting on a legislative framework for Protected Cell Companies to support alternative risk transfer solutions. The structure would let multiple insurance arrangements operate within one legal entity while legally segregating each cell’s assets and liabilities. MAS expects the framework to support captive insurance, insurance-linked securities and sovereign risk pools, with consultation comments due by 7 August 2026.