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OUR MISSION
OUR OBJECTIVES
 
Supervision
Inspections and
Supervisory Reviews
New Legislation
Enhancing Regulatory Frameworks
Market and Business Conduct
Risk Management
B THE FINANCIAL SECTOR: KEY SUPERVISORY
AND REGULATORY INITIATIVES
 
  Inspections and Supervisory Reviews 32
 
BASEL II Implementation  
32
 
Box 1 – BASEL II Implementation in Singapore  
33
 
Thematic Inspections Relating to Anti-Money
 
Laundering/Countering Financing of Terrorism
34
 
Thematic Inspections on Asset-Liability
 
and Capital Management for Life Insurers
35
 
Box 2 – Monitoring Hedge Funds in Singapore  
36
 
Thematic Inspections of Corporate Finance Advisers  
37
 
Thematic Inspections on E-trading of Futures Contracts  
37
 
Inspections of Fund Management Companies  
37
 
Box 3 – Developing and Enforcing Supervisory
 
Regimes for Real Estate Investment Trust  
38
 
Box 4 – Thematic Supervisory Work on Financial Advisers  
39
 
  INSPECTIONS AND SUPERVISORY REVIEWS

Thematic Inspections on Asset-Liability and Capital Management
for Life Insurers
 

With the recent introduction of the risk-based capital (RBC) framework for insurers in Singapore and the increasing focus on the need for sound risk management practices, MAS commenced, in April 2006, thematic inspections on the capital management and asset-liability management of life insurers. The objective of these thematic inspections is to provide MAS with a deeper understanding of individual life insurers’ internal policies and procedures for monitoring and managing their capital and asset-liability positions. The inspections revealed that the life insurers employed systems and tools of varying degrees of complexity.

MAS also assessed the effectiveness of the Board and senior management’s oversight over the insurers’ capital and asset-liability management functions. We observed that there was sufficient understanding and exchange of views between the insurers’ management and the Boards regarding risk assessment practices and the insurers’ overall risk and capital management systems and processes, largely brought about by an increased risk awareness and familiarity with the RBC framework. MAS also noted that some life insurers planned to dedicate more resources to capital and asset-liability management in the near future.