MAS proposes PCC model for separate insurance risks in one entity

The move supports captive insurance and alternative risk transfer.

The Monetary Authority of Singapore (MAS) has issued a consultation paper proposing a legislative framework for a new Protected Cell Company (PCC) corporate structure to help insurers manage separate risk programmes under one legal entity.

The proposal comes as risks have become more complex, more connected, and harder to price, the MAS said in a statement.

It noted that a PCC, or a single legal entity made up of a central core and separate cells, is intended to support captive insurance, insurance-linked securities, and sovereign risk pools.

The consultation paper follows Deputy Prime Minister Gan Kim Yong’s announcement at the Association of Banks in Singapore Annual Dinner in June that MAS will introduce the new framework to scale alternative risk solutions.

Gan said Asia remains significantly underinsured, with natural disasters causing about $84b (US$65b) in economic losses across the region in 2025, more than 90% of which were uninsured.

Meanwhile, MAS said Singapore’s existing corporate structures require risk owners to set up separate entities to separate the capital, assets, and liabilities for each risk programme or coverage.

The auz invites interested parties to submit their comments on the proposed framework. The consultation closes on 7 August 2026.

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