Starr International Insurance (Singapore) Pte., Ltd., a non-life insurance company organized under the laws Singapore (“Starr International Insurance Singapore”), is a direct, wholly owned subsidiary of Starr Insurance & Reinsurance Limited, a Class 4 insurance and reinsurance company organized under the laws of Bermuda (“Starr International Insurance”). Starr International Insurance, is an indirect, wholly owned subsidiary of Starr International Company, Inc., a company organized under the laws of Switzerland (“Starr International”). Starr International Insurance Singapore is engaged in the direct insurance and reinsurance business for clients and customers in Singapore. The insurance and reinsurance products sold include property, casualty, aviation, marine, accident and health, and political and financial risks.
Corporate Governance Framework and Management Controls:
We believe that a solid foundation of good corporate governance and business ethics significantly contributes to our company's ability to operate effectively and realize our full growth potential. For Starr International, this means leadership by a management team of experienced industry leaders who work together to ensure the integrity and risk management oversight of our business.
The Boards of Directors of our insurance companies have established various committees to assist in discharging their duties. These include, but are not limited to Executive, Audit, Compliance, Finance and Investment and Reinsurance/Security Committees. An Enterprise Risk Management Committee has been established at the ultimate parent company level to monitor and govern any emerging risk issues associated with the organization's insurance activities and investment portfolio and oversee the organization’s Enterprise Risk Management (“ERM”) programs and policies, including risks relating to business and financial strategies, operations, compliance, reputation and ethics and cyber security.
Starr International ensures compliance with local regulatory requirements through reliance on its internal Office of the General Counsel as well as in coordination with local legal counsel experienced in local regulatory matters.
Starr International has a multi-faceted compliance program that includes (i) wide ranging policies and protocols covering the code of business ethics and conduct, anti-bribery and anti-corruption, anti-money laundering, data privacy and security, insider trading, social media, records retention and others, (ii) required on-line compliance training classes offered on a quarterly basis providing employees with practical examples of the various compliance policies and procedures at work and offers employees an opportunity to review the policies and keep current with any new developments as a result of changes in local law, and (iii) the Starr Hotline Program, which is a dual, telephone and on-line reporting mechanism enabling Starr International employees to anonymously report suspected violations of law or internal company policies and protocols.
Starr International’s compliance program is managed by its Compliance Director who works in and is physically located within Starr International’s Office of the General Counsel. Certain Starr International employees have been identified to assume compliance responsibilities for the various local offices who then ultimately report to the Compliance Director. The compliance program aims to ensure a compliance culture which transcend all business operations and processes. To meet this objective, required practices and obligations are clearly communicated to all employees and support senior management in their compliance objectives. All new employees are provided with and are required to acknowledge the code of business ethics and conduct, which references and includes the other compliance policies. This effort has resulted in increased awareness of compliance requirements and best practices for all of Starr International’s employees globally and assists in solidifying a culture of compliance throughout the organization.
Enterprise Risk Management
Starr International has established an ERM program to ensure that true active risk management is built into daily business operations through traditional risk management and operational risk management throughout the organization. Starr International believes that strong risk management practices and a sound internal control environment are fundamental to its success and profitable growth.
A. Enterprise Risk Management Committee
The Enterprise Risk Management Committee (“ERM Committee”) of the Board of Directors (“Board”) of Starr International is comprised of various members of executive management within the Starr International organization. The ERM Committee assists the Board in fulfilling its oversight responsibilities related to: (1) monitoring any emerging risk issues associated with Starr International’s insurance activities and its investment portfolio and (2) Starr International’s ERM programs and policies, including risks relating to business and financial strategies, operations, compliance, reputation and ethics and cyber security.
The ERM Committee has developed and established processes, procedures and reviews that encompass the risk management of all of Starr International’s insurance company subsidiares.
The duties of the ERM Committee of Starr International include:
1. Review portfolio qualitative analyses and sectoral qualitative analyses to assess overall insurance portfolio characteristics and performance;
2. Monitor risk-based capital adequacy measures and trends over time;
3. Review reserve level adequacy;
4. Review market risk measures and management;
5. Review emerging regulatory, market, accounting and other trends or developments with significant risk implications;
6. Review new risk management initiatives;
7. Assess the performance of the ERM Committee on a periodic basis; and
8. Perform such other duties as may be delegated to it or requested by the Board.
B. Enterprise Risk Management Working Group
The ERM Committee of Starr International has established the Enterprise Risk Management Working Group (“ERM Working Group”) which meets weekly to review ongoing projects and report directly to the ERM Committee. The ERM Working Group is composed of individuals with various backgrounds and areas of expertise within the insurance industry. The ERM Working Group reports quarterly to the ERM Committee of Starr International, or as soon as possible thereafter, and presents a report summarizing country risk profiles of certain insurance related risk exposures, investment portfolio risk exposures and emerging risk issues associated with Starr International’s insurance activities.
Quantitative information on concentration of insurance risk and further information on insurance risk management can be found in the Notes of the Financial Statement on file with the Accounting and Corporate Regulatory Authority (“ACRA”).
Capital Adequacy and Investments
Quantitative and qualitative information on financial instruments, capital adequacy, and financial performance can be found in the Notes of the Financial Statement on file with the ACRA.