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The Actuary The magazine of the Institute & Faculty of Actuaries

New supervisory regime in Singapore

The Monetary Authority of Singapore (MAS) has announced a new risk-based capital (RBC) framework for insurers in Singapore. In conjunction with the new RBC framework, MAS also issued various regulations, notice and guidelines including Insurance (Actuaries) Regulations 2004 and notices on valuation of both life and general insurance liabilities.

The RBC framework aims to put in place a more transparent and risk-focused capital and valuation basis that reflects all major financial risks of insurers. It was developed in close consultation with insurance practitioners and the actuarial and accounting professions. MAS previously issued two consultations papers to discuss how the RBC framework and regulations will be integrated into the Insurance Act. The last consultation was on 28 November 2003. MAS has considered the feedback received and incorporated them into the framework, where appropriate.

The framework takes into account emerging international standards and good practices in developed countries. The shift from a one-size fits all approach will also encourage insurance companies in Singapore to manage their financial risk more actively and raise overall prudential standards. Find out more at:www.mas.gov.sg/masmcm/bin/pt1Home.htm