Admission Criteria for Captive Insurers

In assessing an application for a captive insurance licence, MAS takes the following factors into consideration:

a. Track Record, Financial Soundness and Reputation.

b. Business Plans
The applicant should have business plans that are well developed and reflect the risk profile of the business.

c. Long-term commitment of the applicant in the use of a captive insurer as a risk management vehicle.

d. The proposed managers of the captive insurer must be competent and have the necessary expertise in captive management.

e. Risk Management Systems
The applicant should satisfy MAS that its risk management systems and processes are adequate and appropriate for the size and complexity of the business. In considering the applicant's standard of risk management, MAS will have regard to the applicant's policies and procedures for managing risks, including its reinsurance arrangements, internal control systems and information technology systems.

f. Fitness and Propriety
The applicant should satisfy MAS that -
i. it is a fit and proper person to be licensed;
ii. any director or key executive person as defined in section 31 of the IA, are fit and proper persons to hold the office;
iii. all of its substantial shareholders as defined in section 1A of the IA, are fit and proper persons; and
iv. all persons having effective control as defined in section 28 of the IA are fit and proper persons.

The business of captive insurers should consist principally of the risks of its related companies. 

Last Modified on 07/09/2017