How to start an Insurtech business in Singapore?
Singapore is one of the best countries to kick start any business where you are a local or foreigner. Why is that? It features a friendly ecosystem that encourages innovation and motivates people to work hard. The regulatory framework necessary to start a business is also straightforward, making it easy for people to acquire all the essential licenses. Singapore is famous for its financial services since it offers high-quality services. The insurance department is also doing well, especially with the introduction of Insurtech, which involves blending technology innovations to ensure efficiency in the insurance sector.
Over the last couple of years, Singapore has welcomed various insurers globally, hoping to innovate amazing technologies that can aid the insurance sector. Currently, this industry is booming but also competitive making it one of the best places to startup.
Starting an Insurtech company in Singapore
All the firms working in Singapore are under the Monetary Authority of Singapore (MAS) since they are responsible for setting up a regulatory framework to guide the business people on how to run their business. The Insurance Act regulates Insuretch companies. This act recognizes reinsurers, insurers, brokers and agents who can work as insurance intermediaries. Singapore allows insurers to either act as foreign or licensed companies.
Licensed companies have the authority to deliver direct services, while foreign firms will run under Lloyd’s Scheme to provide the services. However, it is essential to know that every business you open in the country falls under the Singapore Company Act; hence you must register it. Many people opt to register companies under the Private Limited Company since it features few requirements.
Licensing Insurtech companies in Singapore
Investors who wish to open an Insurtech Business company in Singapore must meet all the requirements. One of the conditions is the least share capital available depending on the services they offer. For instance, companies who wish to provide life insurance services must have a share capital of at least S$5 million. In comparison, companies offering non-life insurance must have a minimum share capital of S$10 million. Licensed reinsurers also have a condition to meet, including depositing the least capital share of S$25 million.
Insurtech Business companies must have risk exposure capital determined through MAS regulatory framework. Also, Insurtech Business companies must have the necessary licenses for setting up a business.
Opening an Insurtech business in Singapore
It would be best to meet some conditions before kicking off an insurance business in the country, including having a chairman and a professional actuary who is either a specialized non-life insurer or life insurer. All the executive officers, including the directors, the chairman, must undergo the MAS’ proper test. Opening an Insurtech Business company in Singapore is simple as MAS offers a friendly regulatory framework that makes kicking off a business simple whether you are a local or foreigner.
Singapore is the hub of significant business operations ranked among the best places to start a firm. Insuretch companies have the digital tools to improve the insurance sector using technology, and Singapore’s government under the MAS is offering support for investors to venture into the industry.