Leong Sing Chiong: Remarks - Official Opening Ceremony of the FM
Global Centre
Remarks by Mr Leong Sing Chiong, Deputy Managing Director (Markets &
Development) of the Monetary Authority of Singapore, at the Official Opening
Ceremony of the FM Global Centre, Singapore, 8 November 2022.
* * *
Thank you, Mr Malcolm Roberts,
Distinguished Guests,
Ladies and Gentlemen,
Good morning. It is a pleasure to join you at the official opening of the FM Global
Centre.
2 The launch of the FM Global Centre is yet another significant milestone in FM
Global's long and rich journey with Singapore.
Since 37 years ago, the Singapore office has grown significantly, and became the
Asia Pacific Headquarters for FM Global in 2019.
Today, it provides commercial property, risk advisory and engineering solutions to
over 400 clients, across 36 markets in Singapore and the region.
The Global Centre is the second biggest centre, outside of the US.
3 The choice of Singapore to house the FM Global Centre is very timely, and is
reflective of two key factors.
First, strong growth prospects. Asia's property insurance industry is projected to
grow from S$122 billion in premiums in 2020, to almost S$200 billion in 2025.1
This is due to continued commercial expansion and infrastructure development as
part of the region's growth.
Second, it also reflects Asia's growing need for natural catastrophe and climate
risk financing solutions, given the region's significant exposure to climate risk. By
2050, it is estimated that climate change losses could cost Asia more than a
quarter (25.6%) of 2019 GDP.2
4 Insurers are important partners in helping governments and businesses manage
physical and transition risks.
The FM Global Centre's testing and research on how properties can be impacted
by fire, floods and natural hazards at varying levels of intensity, can provide
valuable data insights.
These data insights can support the development of ex-ante climate risk
insurance solutions for businesses in the region. It goes to the heart of insurance
solutions - which should increasingly focus on ex-ante risk reduction and loss
prevention, beyond just ex-post risk financing.
The Centre will also provide hands-on loss prevention education to businesses
and individuals, through interactive simulation labs and learning areas.
5 The insurance industry can also play an important role in empowering the
development of the green economy in Asia.
Singapore, for instance, as part of our energy decarbonisation, aims to quadruple
solar energy deployment by 2025.
This shift towards renewable energy means that traditional insurance solutions for
fossil fuel-based power generation need to adapt to meet the risk financing needs
of renewables, or a hybrid energy mix of renewables and fossil-fuel based energy
generation.
We see more insurers in Singapore, including FM Global, offering insurance
covers for solar, onshore wind power generation and batteries, protecting against
the risk of fire, natural hazards, and machinery breakdown.
6 FM Global's investments into deepening its capabilities in Singapore are well aligned
with MAS' Financial Industry Transformation Roadmap, or ITM 2025, launched early
last month.
As a key risk financing centre for Asia, we want insurers here to develop deep,
data-driven capabilities in risk assessment, risk quantification, risk advisory, and
across key risk areas such as climate, cyber, health, and pandemic.
7 The insurance industry in Singapore will also need a deep talent pool to support its
growth ambitions, increasingly comprising multi-disciplinary expertise, combining
scientific, engineering, underwriting and business knowledge.
FM Global's recently established research unit will collaborate with local
institutions such as the NTU's Earth Observatory, to share practical, scientific
approaches to commercial property risk management.
FM Global is also partnering with local universities to offer internship programmes
in sustainability and climate resilience.
And under ITM 2025, MAS has also set aside S$100 million in grant funding over
the next five years to support capacity building, new financing solutions, and talent
development.
8 In conclusion, Singapore's insurance industry is well positioned to support the region's
growth and development through its strong risk management data and insights, ex-ante
risk advisory and ex-post risk financing solutions, and stewardship of clients' business
models to build resilience.
The opening of the FM Global Centre adds to the already strong capabilities in
Singapore, and can bring even greater value to businesses in Singapore and
across Asia.
Congratulations to FM Global on the opening of the FM Global Centre, and I wish
you every success. Thank you.
***
Insurance Business Asia Report, 23 Dec 2021. https://www.insurancebusinessmag.
com/asia/news/property/apac-property-market-pegged-at-us137-5-billion-for-2025320798.aspx
2
Swiss Re Group, 23 Apr 2021. https://www.swissre.com/risk-knowledge/risk-
perspectives-blog/climate-change-cost-asia-pacific.html