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Singapore PCC plan targets collateralized reinsurance and ILS issuance
Aon’s George Ong said Singapore’s Protect Cell Company framework could improve legal segregation of assets and liabilities across insurance cells, supporting more efficient risk transfer.
Singapore’s Monetary Authority of Singapore has launched a consultation on a Protect Cell Company, or PCC, regulatory framework aimed at supporting collateralised reinsurance, including sidecars, as well as more efficient insurance-linked securities issuance, Aon said.
Aon regional director George Ong, Captive and Insurance at Global Risk Consulting, highlighted that a PCC structure uses a shared legal framework that segregates assets and liabilities between individual cells, helping prevent the obligations of one cell from affecting another.
Ong pointed to what he described as benefits versus standalone entities, including lower cost and simpler operations, and said the framework could strengthen governance and transparency by keeping capital dedicated to the risks it is intended to support.
He also argued the move could help address Asia’s protection gap and growing exposures by making risk transfer more available and, in some cases, more affordable, noting Aon’s White Rock vehicles already provide captive, ILS and reinsurance transactional structures across offshore locations.