Admission Criteria for Licensed Direct Insurers

Applicants for direct life and general insurance licences are required to satisfy the same admission criteria. In assessing an application, MAS takes the following factors into consideration:

a. Domestic and International Rankings
The applicant's domestic and international rankings by, inter alia, factors such as premiums and assets.

b. Past and Present Credit Ratings
The applicant's credit ratings by international rating agencies including Standard and Poor's, A.M Best, Moody's and Fitch.

c. Track Record, Financial Soundness and Reputation
The track record, financial soundness and reputation of the applicant, having regard to the applicant's level of compliance with its home regulations. In assessing this criterion, MAS will consult the applicant's home supervisory authority on matters relating to the applicant. MAS will also take into consideration the applicant's record in areas of product innovation, the use of alternative distribution channels and its expertise in specialist and niche fields.

d. Business Strategy and Plans
The applicant should have a business strategy, supported by detailed plans, that is well developed and reflect the risk profile of the business.

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 under section 28 of the IA are fit and proper persons.

Note: All licensed direct insurers will be required to subscribe to the Financial Industry Disputes Resolution Centre.

Last Modified on 07/09/2017