The insurance and fintech sectors are the main drivers of job creation in Singapore, according to its chief financial regulator.

There was a net total of 7,800 new jobs in Singapore’s financial services sector in 2016 and 2017, revealed Ravi Menon, managing director of the Monetary Authority of Singapore (MAS) in a speech at MAS’s annual media conference.

“Job growth was mainly driven by the insurance and fund management industries, and to a lesser extent by the banking industry,” Menon said. “Fintech alone is estimated to have contributed close to 2,000 of the net jobs created during these two years.”

The financial services sector’s growth vastly improved in 2017, growing 4.9% compared to 1.8% in 2016.

Singapore aims to create close to 3,000 jobs in financial services and 1,000 jobs in fintech each year, under its four-year plan to revitalise its financial industry and make it a leading global financial centre in Asia.

With the net job increase of 2016 and 2017, Singapore is close to meeting its target of 8,000 new jobs. MAS predicted that, in 2018, the Lion City will exceed its target.

The life insurance sector, which Menon cited as one of the top contributors, has grown by 16% annually over the last two years. This is contrasted with net non-life premiums, which have grown only 2% per annum, due to excess capacity in the segment.

“Business conditions have been challenging globally, due to excess capacity and downward pressure on premiums,” he said.

However, Singapore remains the premier reinsurance hub in Asia, according to Menon. This was evidenced by major reinsurers such as Swiss Re and Munich Re setting up their regional headquarters in Singapore.

“We are making a push into alternative risk solutions such as risk pools and insurance-linked securities or ILS,” he said.

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