Singapore is developing supervisory guidelines for artificial intelligence risk management, an international reinsurance conference was told last week.

Monetary Authority of Singapore (MAS) MD Chia Der Jiun said the regulator is addressing industry feedback about strengthening governance.

Through an industry consortium – Project MindForge – the authority is working with financial institutions, including some insurers, to develop a risk management handbook to guide responsible AI deployment.

“MAS will continue to partner with and support the industry to adopt AI effectively and responsibly, while supporting the financial sector workforce to gain the skills to use AI to augment their jobs,” he told the four-day event.

Mr Chia also said there is an increasing need to ensure the right insurance capacity is available amid an increase in the frequency of high-impact disasters. 

MAS supports the growth of mainstream insurance and sees a complementary role for the alternative risk transfer market – including insurance-linked securities – which is relatively “nascent” compared with the US, he said.

“With climate risks growing globally, including in Asia, we expect continued momentum in the growth of ILS alongside reinsurance capacity in our region as more countries and businesses seek greater protection from catastrophic risks.” 

The Singapore International Reinsurance Conference was attended by more than 3800 delegates from 84 countries.

It included a keynote address from Lloyd’s CEO Patrick Tiernan and panel discussions on topics including geopolitical tensions, climate and digitalisation. Next year’s conference, organised by the Singapore Reinsurers’ Association, will be held from November 1 to 5.