Last Revised Date: 06 March 2020
These guidelines apply to all direct life insurers intending to develop and use internal models for insurance products with investment guarantees which have non-linear payouts (e.g. variable annuity policies).
They set out:
- General application process for the exemption from relevant section in the Insurance (Valuation & Capital) Regulations so that the insurer may use internal models.
- Conditions that an insurer should observe for MAS' assessment of internal model.
- Information expected for application.
- Minimum standards that an insurer is expected to observe for the use of internal model.