Insurance-linked securities such as catastrophe bonds are seen as a complementary mechanism to help provide the necessary capital to transfer and fund the risks of large infrastructure projects in Asia, according to Lim Cheng Khai of the Monetary Authority of Singapore (MAS).
Speaking at International Association of Engineering Insurers annual conference in Singapore earlier today, Lim Cheng Khai, Executive Director, Financial Markets Development Department, Monetary Authority of Singapore highlighted the efforts being undertaken to attract more insurance-linked securities (ILS) business to the country and how this is relevant to Asia’s digital infrastructure and related power build-out.
“Look around Asia today. Almost everywhere, something is being built. New grids, new railways, new data centres, new power plants and renewable energy projects. The scale is considerable,” he explained. “The Asian Development Bank (ADB) estimates that Southeast Asia needs around US$210 billion of infrastructure investment every year, to maintain its economic growth, tackle poverty, and address climate impacts.”
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