Local insurers burdened by Singapore's 'onerous' regulations, extreme manpower crunch

Good insurers are getting 'strangled'.

Local insurers are being burdened by Singapore's 'onerous' regulations, according to a report by PwC.

The report said that new rules governing solvency and market conduct could swamp the industry with costs and compliance problems.

It could also distract management from the task of running healthy businesses at a time when the industry faces radical structural change.

A Singapore respondent warned that over-regulation “potentially strangles perfectly good and sound insurers from conducting good and sound business”.

“We work in several jurisdictions and we find the Singapore regulatory environment the most onerous by some measure," the respondent said.

Interestingly, human talent emerged as the second highest risk in the survey in Singapore, which is much higher than the global average. 

“A lack of experienced talent in the industry is leading to an overall reduction in the quality of underwriting and protection both at the direct and reinsurance level”, warned one respondent, while another said: “With higher mobility and increased competition for talent, it is challenging to attract and retain good staff”.