HSBC Insurance (Singapore) has announced that the Monetary Authority of Singapore (MAS) has recognized it as a Tier-1 insurer.
To qualify as a Tier-1 insurer, a direct life or composite firm must have total assets of at least SGD5 billion (US$3.58 billion), while a direct general insurer or reinsurer must have annual gross premiums of at least SGD500 million (US$358 million).
In 2003, global financial firm HSBC acquired Keppel Insurance to be a part of its Singapore operations. Since then, its total assets in Singapore grew by almost five times, reaching SGD4.3 billion in 2015 and breaching the SGD5billion mark by 35% in 2016.
As a Tier-1 insurer, HSBC will be subject to tighter corporate governance rules.
According to a press release, HSBC will continue to make investments on digital technology and data analytics in order to refine its product offerings, distribution, and sales channels. The group considers Singapore as a key market with life insurance manufacturing capabilities, along with the UK, France, Mexico, Argentina, and Hong Kong.
“This is a significant milestone for us as a result of our focus to sustainably grow the business since we first acquired the initial insurance book in 2003,” said Ian Martin, chief executive of HSBC Insurance Singapore.