MAS Releases Consultation Paper on Amendments to Insurance Act
Singapore, 26 May 2003?The Monetary Authority of Singapore (MAS) today released a consultation paper on proposed amendments to the Insurance Act (IA) and invites comment from the public.
2 The proposed amendments in IA will see the introduction of frameworks for risk-based capital and health insurance. MAS has previously issued consultation papers on the two issues and this new consultation paper discusses how they will be integrated into the Insurance Act:
Risk-based capital framework: The framework seeks to build a capital requirement that reflects relevant risks faced by the insurance companies so that capital will serve as an effective buffer to absorb fluctuations in asset and liability values. It will also provide clear information on the financial strength of insurance companies and facilitate early and progressive intervention by MAS.
Health insurance regulatory framework: This aims to strengthen the prudential and market conduct requirements for health insurers and also help ensure that they are able to meet their obligations.
3 An authorisation framework to govern the cross-border supply of reinsurance will also be put into place. This framework, which sets the minimum requirements for cross-border insurers will allow MAS to provide oversight on the rendering of reinsurance services on companies that do not have a physical presence in Singapore.
4 The amendments to the IA are expected to take effect on 1 Jan 2004. Consultation on the relevant Regulations will be carried out in the third quarter of this year.
5 The consultation paper is posted on the MAS website, www.mas.gov.sg and comments should reach MAS by 27 June 2003. Please submit your comments to firstname.lastname@example.org.