Singapore Insurers Are Leaving 400 Basis Points on the Table
Why it’s time to stop pretending this is normal.
Singapore insurers are underperforming by up to 400 basis points annually on their investment portfolios.
Let’s be clear – that’s not market-driven. It’s operational.
The real reason?
Because “this is how it’s always been done.”
Investment offices in many insurers still run on a script written 50 years ago, and it wasn’t great back then either.
A Cost Centre, Not a Performance Engine
While researching investment governance in Singapore’s insurance sector, I found something wild:
Most insurers – globally – still treat their investment office as a cost centre, not a performance engine.
As someone who’s led trading desks and structured deals across global markets, I find that… amazing (not in a good way).
The Result?
📉 1.00% to 4.00% of performance drag – every year.
📉 A passive, risk-averse culture where actuaries get the spotlight… and portfolio managers play backup dancer.
If I were a shareholder, I’d be concerned.
If I were a policyholder? I’d be furious.
Performance Rankings (Yes, We Checked)
- Top performers: European, Australian, and North American insurers (relative to their peers).
- Singapore: Lags behind Hong Kong, Thailand, Malaysia, and the Philippines.
- Worse still: Some pension funds – especially Australia’s super funds. Giant AUM, microscopic alpha.
So I Wrote a Paper
Because it deserves more attention.
🎯 Reframing the Insurance Investment Office
How Asia-Pacific Insurers Lose Up to 400bps – and How to Win It Back
It’s a blueprint for transforming your investment function from back-office bureaucrat to strategic capital catalyst.
Want to Read It?
📩 Drop me a message at Contact Mike Duncan or
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