Notice 133 Valuation and Capital Framework for Insurers

Sets out the requirements under the risk-based capital framework for all licensed insurers, including the way in which assets and liabilities are to be valued.

Applies to: Direct Insurer (Life) , Direct Insurer (General) , Direct Insurer (Composite) , Reinsurer (Life) , Reinsurer (General) , Reinsurer (Composite) , Captive Insurer

View Notice Notice 133 Valuation and Capital Framework for Insurers (2.35 MB)

This Notice is issued following the RBC 2 review and comprises both mandatory requirements and guidelines on the supervisory intervention levels, valuation of policy liabilities in respect of life business and general business, and the calculation of the total risk requirements and financial resources. Existing technical details on valuation of assets and liabilities, as well as the computation of financial resources and risk requirements in the Insurance (Valuation and Capital) Regulations 2004, MAS Notice 319, and Guidelines ID 1/04 have been moved to this Notice.

Section 1 of this Notice applies to all licensed insurers. Sections 2 to 5 of this Notice apply to all licensed insurers except captive insurers, marine mutual insurers and special purpose reinsurance vehicles (“SPRVs”). Section 6 of this Notice applies to captive insurers, marine mutual insurers and SPRVs only.

There are no amendment notes for this notice.

Guidelines

Last Revised Date: 06 March 2020

Guidelines on Use of Internal Models for Liability and Capital Requirements for Life Insurance Products Containing Investment Guarantees with Non-Linear Payouts [ID 01/13]

Guidelines for insurers seeking exemption to use internal models to determine the regulatory liability and capital requirements for life insurance products with investment guarantees which have non-linear payouts.

Valuation and Capital Insurance Products and Business Types
Notices

Last Revised Date: 05 March 2020

Notice 319 Valuation of Policy Liabilities of Life Business [Cancelled with effect from 31 Mar 2020]

Requirements and guidelines on the valuation and reporting of policy liabilities.

Valuation and Capital Financial Returns Insurer-related Reports
Circulars

Published Date: 28 February 2020

ID 07/20 Issuance of Insurance (Valuation And Capital) (Amendment) Regulations 2020 and New MAS Notice 133 on Valuation and Capital Framework for Insurers

Informs all licensed insurers of the issuance of the Insurance (Valuation and Capital) (Amendment) Regulations 2020 and new MAS Notice 133 on Valuation and Capital Framework for Insurers

Financial Returns Licensing, Authorisation and Registration Valuation and Capital
Subsidiary Legislation

Published Date: 22 April 2019

Deposit Insurance and Policy Owners' Protection Schemes (Policy Owners' Protection) (Scheme Returns)
Subsidiary Legislation

Published Date: 19 December 2018

Insurance (General Provisions and Exemptions for Special Purpose Reinsurance Vehicles) Regulations 2018

Sets out requirements for reinsurers established as special purpose reinsurance vehicles for purposes of insurance securitisation.

Licensing, Authorisation and Registration Valuation and Capital General Provisions Exemptions Financial Returns
Subsidiary Legislation

Published Date: 19 December 2018

Insurance (Valuation and Capital) Regulations 2004

Sets out the requirements under the risk-based capital framework for all licensed insurers, including the way in which assets and liabilities are to be valued.

Financial Returns Valuation and Capital Licensing, Authorisation and Registration
Subsidiary Legislation

Published Date: 19 December 2018

Insurance (General Provisions and Exemptions for Marine Mutual Insurers) Regulations 2018

Sets out requirements for direct general insurers licensed to write marine mutual insurance business.

Licensing, Authorisation and Registration Valuation and Capital General Provisions Exemptions Financial Returns
Consultations

Published Date: 15 July 2016

Consultation Paper on RBC 2 Review - Third Consultation

The third public consultation paper on MAS’ review of the Risk-Based Capital framework for insurers sets out the revised proposals after taking into account the feedback received from the previous consultation in 2014 and subsequent engagements with the industry.

Valuation and Capital

Consultation number:

P007 - 2016

Start date:

15 July 2016

Closing date:

20 October 2016

Status:

Closed
Consultations

Published Date: 26 March 2014

Consultation Paper on RBC 2 Review - Second Consultation

This consultation paper sets out more specific proposals, following the first consultation of the roadmap for MAS’ review of the RBC framework in June 2012. The consultation paper also contains the detailed technical specifications for insurers to conduct a full scope Quantitative Impact Study (“QIS”) to fully understand the impact of RBC 2.

Valuation and Capital

Consultation number:

P003 - 2014

Start date:

26 March 2014

Closing date:

30 June 2014

MAS response date:

15 July 2016

Status:

Responded
Subsidiary Legislation

Published Date: 18 April 2013

Insurance (General Provisions and Exemptions for Captive Insurers) Regulations 2018

Sets out requirements for captive insurers licensed under the Insurance Act (Cap.142).

Financial Returns Valuation and Capital General Provisions Exemptions Licensing, Authorisation and Registration
Consultations

Published Date: 11 July 2011

Consultation Paper on Proposed Revisions to the Risk Based Capital Framework - Financial Resources Adjustment Reinsurance Adjustment C2 Risk Requirements

This consultation paper sets out MAS review of areas relating to credit risks arising from insurance contracts, and contagion risk arising from intra-group transactions. The proposals touch on changes to the financial resources adjustment, the reinsurance adjustment and the C2 risk requirements under our RBC framework.

Valuation and Capital

Consultation number:

P006 - 2011

Start date:

11 July 2011

Closing date:

11 August 2011

Status:

Closed
Guidelines

Last Revised Date: 03 January 2008

Valuation of Policy Liabilities of General Business [ID 1/04]

Guidelines for valuation of general insurance policy liabilities, and for preparing an actuarial investigation report for general insurance business.

Valuation and Capital Insurer-related Reports