Mr Leong Sing Chiong, MAS’ Deputy Managing Director, spoke of insurers as important partners in helping governments and businesses manage physical and transition risks, and the important role that the insurance industry can play in empowering the development of the green economy in Asia.
Reply to Parliamentary Question on Regulatory Guidelines in Classifying Third Party Administrator Costs in Financial Returns Lodged by Accident and Health Insurance Companies with MAS
QUESTION NO 707
NOTICE PAPER 418 OF 2021
FOR WRITTEN ANSWER
Date: For Parliament Sitting on 10 May 2021
Name and Constituency of Member of Parliament
Dr Tan Yia Swam, NMP
To ask the Prime Minister (a) whether there are any regulatory guidelines in classifying third party administrator costs in the financial returns lodged by accident and health insurance companies with MAS; and (b) if so, whether such costs are included in the returns as management expenses or gross claims settled.
Answer by Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:
1. Some insurers offering health insurance appoint third party administrators (“TPAs”) to undertake a variety of claims administration services on their behalf.
2. In their statutory submissions to MAS, insurers are required to classify TPA-related expenses directly related to claims paid, such as claims administration expenses incurred for each processed claim, as part of gross claims settled. They must classify other TPA-related expenses, such as ongoing panel management fees, as part of management expenses. External auditors check whether these requirements are met, and MAS will take action on any non-compliance.