SINGAPORE Trends and Developments Contributed by: Carmel Green and Claire Schekeloff, RPC Premier Law
with greater accuracy, enabling capacity to flow into segments of the market that have historically been underinsured. At the same time, expectations around insurers’ roles are evolving. Across Asia, there is a growing view that insurers should not only absorb the financial impact of climate-related losses but also play a more proac- tive role in bridging protection gaps. This manifests both indirectly, by incorporating ESG and climate resil- ience criteria into underwriting to influence real-world behaviours (for example, offering more favourable terms for buildings with enhanced flood defences or climate resilient construction), and directly, through the expansion of parametric products and commu- nity-based micro-insurance. In fact, the parametric insurance market in APAC is projected to have a Com- pound Annual Growth Rate (CAGR) of 10.6% between 2022 and 2028 (with China alone expected to reach a market value of USD1.6 billion by 2028). Taken together, these developments suggest that cli- mate risk will remain a defining challenge for insur- ers in 2026, and Singapore will no doubt continue to be at the forefront of efforts to reshape the region’s approach to navigating the complexities posed by While the physical effects of climate change are most visible in the property and casualty space, climate- related exposures are also increasingly influencing liability risks for D&Os and financial institutions in Singapore. As consumers and investors become more attuned to the adverse impacts of climate change, greenwashing has emerged globally as a growing source of regulatory and reputational risk. Historically, the regulatory envi- ronment in Singapore has not taken the same hard- line approach to greenwashing as seen in markets like Australia or the EU, where high-profile enforcement actions and litigation have become increasingly com- mon. However, this is beginning to shift. In October, the Competition and Consumer Commis- sion (CCC) released its long-awaited guidance for businesses on environmental claims. This had been in climate risks. Greenwashing
the pipeline for around two years and was principally commissioned in response to growing greenwash- ing concerns in Singapore. The CCC’s guidance is designed to assist businesses in navigating the unfair trade practices regime under the Consumer Protec- tion (Fair Trading) Act 2003 when making “Quality- related Claims”. It distils five principles to which busi- nesses must adhere when making such environmental claims – they must now be: • true and accurate; • clear and easily understood; • meaningful; • accompanied by material information; and • supported by evidence. While greenwashing-related exposure has become a significant concern for D&Os globally, this risk has not yet materialised to the same extent in Singapore, due predominantly to a softer approach to enforcement action than seen elsewhere. However, this guidance could be a defining moment for Singapore’s approach to greenwashing, as it stands on the doorstep of a more stringent, regulatory landscape. Emerging markets with relatively low insurance density and penetration While Singapore’s reputation as a mature and sophis- ticated insurance market continues, there are sever- al underinsured areas that pose meaningful growth SMEs play an integral role in Singapore’s econo- my, representing around 99% of all businesses and employing around 70% of the domestic workforce. Despite the paramount role played by SMEs, many remain structurally underinsured, particularly in respect of cyber risks. According to recent data, less than 40% of SMEs in Singapore held cyber insurance in 2025, with penetra- tion falling from 38% in 2024 to 36% in 2025 – despite the rising frequency of cyber incidents and heightened regulatory expectations around data governance. This disconnect is even more striking when it is considered that SMEs are traditionally more vulnerable to cyber opportunities for insurers. Cyber insurance in SMEs
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