During Singapore’s announcement of the 2020 budget on February 18, the government announced that the Insurance Business Development (IBD) umbrella scheme and the IBD-Captive Insurance scheme would be extended up to 2025. Both schemes were set to end next month.

The Insurance Business Development scheme gives qualified insurers a concessionary tax rate of 10% for 10 years on qualifying income derived from onshore and offshore life reinsurance business, a report by the Straits Times said. The scheme also includes onshore and offshore general insurance and reinsurance, excluding the following business lines: motor, fire, personal accident, health, and work injury compensation. 

Meanwhile, the Singaporean government also extended the Maritime Sector Incentive up to December 2026. The incentive provided several tax benefits to shipping operators, maritime lessors and other providers of shipping-related support services.

The moves are part of Singapore’s efforts to elevate its status as a re/insurance and marine industry hub in the region.  In previous years, Singapore developed several mechanisms to boost its insurance industry, such as advancement of alternative risk transfer mechanisms including insurance-linked securities (ILS) and government pools.