(SINGAPORE) Away from the spotlight, the insurance business in Singapore is buzzing.

In the past 12 months alone, close to 10 new players such as Atradius Credit Insurance, Friends Provident International (FPI) and five syndicates of Lloyd's Asia have set up offices here. Previous years would see only three or four new firms making their way here.

The recent spike is significant as, by end-March this year, the number of insurance firms here stood at 153.

Meanwhile, total industry assets reached $113.1 billion last year - up 10 per cent from a year earlier.

The infusion of new players is no accident. Sources said that the authorities have been offering sweeteners to attract firms to set up offices here.

To keep setup costs under control, firms have been offered subsidies for rental of office space.

Subsidies are also being offered for staff training and professional courses.

The Republic is already an important insurance and reinsurance centre in Asia, according to the Monetary Authority of Singapore (MAS). The central bank added that it is supportive of the industry's training initiatives and efforts to build up the talent pool.

Said a spokesman: 'The Institute of Banking and Finance is leading an effort to raise competencies across the financial sector.'

The spokesman added: 'The Singapore College of Insurance (SCI), as well as the Singapore Insurance Institute (SII) are also working closely with the industry to develop quality, industry-relevant training and education programmes.'

Goodies apart, firms found the prospects in Singapore and the region fairly bright.

For Atradius, the world's second largest credit insurer, setting up an office here is a 'logical extension of its regional business', said its principal officer Terry O'Reilly. The company already has operations in Japan, Hong Kong, Shanghai and Mumbai.

Mr O'Reilly also sees opportunities in the market for small-and-medium sized enterprises, and wants to service its MNC clients that have businesses here.

The insurer is also looking to partner firms with licences in locations like Malaysia and Indonesia, as well as the local banks. It hopes to grow its headcount from four to 10 by the end of this year.

Lloyd's has replicated its London market structure in Singapore, and under Lloyd's Asia, a total of nine syndicates of Lloyd's underwrite businesses from across Asia out of Singapore. Its representative, Simon Wilson, said that Asia is attractive to United States and Europe-based insurers 'largely due to the higher growth rates on offer in terms of overall premiums'.

'Growth rates of general insurance premiums in many parts of Asia are currently running at over 20 per cent per annum - much higher than those seen in more mature markets like the US and Western Europe.'

He also attributes the growth in demand for general insurance products to factors like rising corporate and individual wealth.

As their key clients expand globally, leading foreign insurers are getting more interested in Asia.

The higher levels of regulation and corporate governance standards in Asia also means that firms now have to buy more sophisticated insurance products.

'Some multinational insurers have specialised in these areas and are now looking to offer Asian customers access to the same products as those available in the US and Europe,' said Mr Wilson.

Besides China and India, Lloyd's also sees 'good opportunities' in other South-east Asian markets such as Vietnam, Indonesia, Malaysia and Thailand.

FPI, a large UK-based life insurance and pension firm, marked its entry recently with the launch of a wealth management product aimed at rich individuals.

The office now has a full-time staff of four people, which is likely to grow to about a dozen in the next three years, said Chris Gill, who heads the Singapore team.

Clarence Wong of Swiss Re offered another reason for the surge in foreign entrants here - the barriers to market entry in other Southeast Asian countries.

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