MAS consults on proposed protected cell company framework

5 August 2026

On 7 July 2026, the Monetary Authority of Singapore (“MAS”) issued a consultation paper seeking feedback on its proposal to establish a legislative framework for a new protected cell company (“PCC”) corporate structure under a new Protected Cell Companies Act (“PCC Act”).

The PCC framework is designed to support the following three insurance use for a start:

  • Captive insurance: With the PCC framework, companies can establish dedicated captives, where a firm can manage multiple self-insuring programmes through separate cells within a common umbrella core, or participate in “rent-a-captive” insurance solutions, to use a segregated cell to run its own risk programmes, within a shared captive facility provided by a service provider. This reduces setup and operating costs, increasing accessibility of captive solutions that would otherwise be commercially unviable, particularly for smaller firms.
  • Insurance-linked securities (“ILS”): Insurers can tap on the capital markets to secure additional risk-bearing capacity by issuing ILS through separate cells within a PCC structure, without the need to establish a new special purpose vehicle for each transaction. This enables faster execution, lowers issuance costs, and makes smaller or more bespoke transactions (such as sidecars and collateralised reinsurance) more viable.
  • Sovereign risk pools: PCCs can support insurance facilities that pool risks across multiple countries or participants, such as disaster risk financing initiatives. The ability to segregate different risk exposures within a single structure provides flexibility to manage diverse portfolios.

The proposed framework aims to support the growth of alternative risk transfer solutions and deepen Singapore’s role as a risk management hub.

This consultation, which focuses on the policy proposals to be included in the new PCC Act, closes on 7 August 2026.

The proposed draft PCC Act and the policy proposals to be included in the subsidiary legislation under the new PCC Act or Insurance Act 1966 will be consulted on at a later stage.

This Alert provides an overview of the PCC framework proposed by MAS.

To read the Alert, click here.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg: