Regulatory Alerts2022-01-01
Insurance (Long-Term Insurance Business Solvency) (Amendment) Rules 2022
The Financial Services Commission issued the Insurance (Long-Term Insurance Business Solvency) (Amendment) Rules 2022 to update solvency calculations for long-term insurers. The amendment introduces definitions for "custodian" and "structured investment-linked insurance business," while revising rule 12 to exclude assets backing linked and structured policies from an insurer's total assets. These revised provisions exempt specific collective investment scheme investments and custodian-held assets from the rule, taking effect on 3 September 2022.
Vinit/Imac05/Govt Notices/2022/XXXXX - xx.xx.2022 - 1st Proof Government Notices 2022 2831 Vinit/Imac05/Govt Notices/2022/The Insurance (Long-Term Insurance Business Solvency) (Amd) Rules 2022 - 30.08.2022 - 1st Proof Government Notice No. 238 of 2022 THE INSURANCE ACT FSC Rules made by the Financial Services Commission under Section 93 of the Financial Services Act and Sections 23 and 130 of the Insurance Act
- Citation These rules may be cited as the Insurance (Long-Term Insurance Business Solvency) (Amendment) Rules 2022.
- Interpretation In these rules – “principal rules” means the Insurance (Long-Term Insurance Business Solvency) Rules 2007.
- The principal rules are amended – (a) in rule 2, by inserting, in the appropriate alphabetical order, the following new definitions – “custodian” has the same meaning as in the Act; “structured investment-linked insurance business” has the same meaning as in the Act; (b) in rule 12 – (i) by deleting paragraph (10) and replacing it by the following new paragraph – (10) “Assets of the insurer” for the purposes of this rule shall not include assets backing linked long term insurance business and structured investment-linked insurance business.
2832 Government Notices 2022 Vinit/Imac05/Govt Notices/2022/The Insurance (Long-Term Insurance Business Solvency) (Amd) Rules 2022 - 30.08.2022 - 1st Proof (ii) by deleting paragraph (11) and replacing it by the following new paragraph – (11) This rule shall not apply to an investment in a collective investment scheme and investment held with a custodian in respect of structured investmentlinked insurance policies. 4. Commencement These rules shall come into operation on 3 September 2022. Made by the Financial Services Commission on 25 May 2022.