(a) in the case of any insurer or reinsurer (other than a captive insurer) registered under the Act before 27th October 1997, an amount not less than $25 million by 1st January 2000;
(b) in the case of any insurer or reinsurer (other than a captive insurer) registered under the Act on or after 27th October 1997, an amount not less than $25 million; and
(c) in the case of a captive insurer, an amount not less than $400,000.
Margins of solvency
3. -(1) For the purposes of section 18 (1) (a) of the Act, the fund margin of solvency of an insurance fund established in respect of general business to be maintained by an insurer at all times during any accounting period is prescribed as follows:
S 466/2002, wef 01/10/2002
(a) for a fund established by any insurer other than a reinsurer or captive insurer relating to Singapore policies, it shall not be less than -
(i) $5 million;
(ii) 50% of net premium income of the fund in the preceding accounting period; or
(iii) 50% of loss reserves of the fund as at the end of the preceding accounting period,
whichever is the highest;
(b) for a fund established by a reinsurer relating to Singapore policies, it shall not be less than -
(i) $1 million;
(ii) 20% of net premium income of the fund in the preceding accounting period; or
(iii) 20% of loss reserves of the fund as at the end of the preceding accounting period,
whichever is the highest;
(c) for a fund established by a captive insurer relating to Singapore policies, it shall not be less than -
(i) $400,000;
(ii) 20% of net premium income of the fund in the preceding accounting period; or
(iii) 20% of loss reserves of the fund as at the end of the preceding accounting period,
whichever is the highest;
(d) for a fund established by any insurer other than a reinsurer or captive insurer relating to offshore policies, it shall not be less than -
(i) $1 million;
(ii) 20% of net premium income of the fund in the preceding accounting period; or
(iii) 20% of loss reserves of the fund as at the end of the preceding accounting period,
whichever is the highest; and
(e) for a fund established by a reinsurer or captive insurer relating to offshore policies, there shall be maintained in the fund assets not less than the amount of the liabilities of the fund.
(2) For the purposes of section 18 (1) (a) of the Act, the fund margin of solvency of an insurance fund established in respect of life business (other than an insurance fund established and maintained for investment-linked policies) to be maintained by an insurer at all times during any accounting period is prescribed as follows:
S 677/2003, wef 01/01/2004
(a) for a fund established by any insurer other than a reinsurer or captive insurer relating to Singapore policies, it shall not be less than the sum of the following items:
(i) 3% of the insurer's liabilities as determined under Part V in respect of non-participating policies and 2% of such liabilities in respect of participating policies, as at the end of the preceding accounting period;
(ii) 0.1% of the sum insured at risk for policies whose original term is 2 years or less and 0.2% of the sum insured at risk for policies whose original term is more than 2 years, as at the end of the preceding accounting period; and
(iii) 50% of net premium income from accident and health policies of the fund in the preceding accounting period,
but in no event shall the aggregate fund solvency margin maintained in respect of Singapore policies be less than $5 million;
(b) for a fund established by a reinsurer or captive insurer relating to Singapore policies, there shall be maintained in the fund assets not less than the amount of the liabilities of the fund; and
(c) for a fund established by any insurer relating to offshore policies, there shall be maintained in the fund assets not less than the amount of the liabilities of the fund.
(3) For the purposes of paragraph (2) (a) (ii), the sum insured at risk may be reduced for any reinsurance ceded up to a maximum of 25%.
(4) For the purposes of paragraph (2) (a), assets representing the surplus of the assets over the liabilities of any insurer may be counted towards meeting the fund margin of solvency, provided that those assets -
(a) are maintained in Singapore;
(b) are valued in accordance with Part III; and
(c) cannot be used for any purpose other than to meet the fund's liabilities.
(5) Separate account shall be kept for the assets referred to in paragraph (4) and the Authority may direct that the whole or a specified proportion of those assets be held by an approved trustee.
(6) Assets in the separate account may be withdrawn with the approval of the Authority if they are no longer needed to meet the fund solvency margin requirements, but only after a valuation of the assets and liabilities of the fund is carried out.
(7) For the purposes of section section 18 (1) (b) of the Act, the margin of solvency to be maintained by an insurer at all times is prescribed as follows:
S 466/2002, wef 01/10/2002
(a) in the case of any insurer (other than a captive insurer) registered in respect of one class of insurance business, $5 million;
(b) in the case of any insurer (other than a captive insurer) registered in respect of both classes of insurance business, $10 million; and
(c) in the case of a captive insurer, $400,000.
(8) The assets representing the fund margins of solvency required in paragraphs (1) and (2) shall not be taken into account in calculating the margins of solvency for the purposes of paragraph (7).
