Insurance Broker License Application Singapore

First, it is important to understand the difference between an insurance broker and an insurance agent. Generally, we meet many insurance agents in our regular course of work. It seems that most of these agents do not have any licensing requirements. However, the case is not the same for an insurance broker. An insurance broker must secure the required license from the Monetary Authority of Singapore.

Insurance brokers help people understand their insurance requirements and provide the proper guidance by offering professional services to their customers. They act as a mediator between a person looking to purchase an insurance policy and an insurance company. On the other hand, an insurance agent is a salesman of the insurance company trying to sell their policies.

The below table summarises the difference between the two.

In simple terms, an insurance broker is a miniature version of an insurance company that is trying to help its customers find the best insurance policy depending on their needs.

Insurance brokers source insurance binding services from numerous companies and provide the most relevant and most beneficial solutions to their customers. An IB firm can have many brokers as their staff members to advise multiple clients on appropriate insurance policies. A broker firm can operate at a vast scale.

• The company must be registered in Singapore.
• The minimum paid-up capital must be 300,000 SGD for each insurance activity referred above. So if a company decides to operate in all three types of activities, the capital required will be 900,000 SGD.
• The company must have a professional indemnity insurance policy covering at least 1 Million SGD for each activity referred above. So the PII coverage for a company that operates in all three types of insurance activities will be 3,000,000 SGD.
• The company must have a permanent business location in Singapore.
• There is no requirement for any local shareholding. In other words 100% foreign shareholding is allowed.
• There is also no requirement to have any Director or top management person to be Singapore Citizen or Permanent Resident.

The applicant must have at least 3 years of proven track record with respect to the insurance broking business type that it intends to carry on in Singapore. In case the applicant does not satisfy the 3-year track record requirement, the Authority may take into account the (i) track record of the applicant’s substantial shareholders; and (ii) experience and qualifications of the applicant’s key management staff, such as its CEO and EDs when assessing the application

Depending on your circumstances, we will be required to present a proper case to the MAS, regarding the background, track record and your business plans.

Submitting an IB application is a time-consuming process. A compliance partner is recommended to improve your chances of a successful application significantly.

Epica Compliance can take that weight off your shoulder.

Once you engage our services, we take 4-6 weeks to prepare all your documents, present a strong case and file the application. The MAS is expected to take 4 months of processing time after submitting the application.

Submitting an Insurance Broker License application and initial compliance setup are not easy tasks. You need to fulfil a lot of requirements, like:

• Lots of information about the company, CEO, and directors while filling out the form
• Most of the key employees must follow the Fit & Proper criteria
• All policies, including the AML CFT and employee conduct policy, need to be created properly to suit your business needs and activities

Engage a professional firm to apply for your insurance broker license and help with the appropriate compliance setup for your business.