Amendments To Insurance Returns Legislations

Circular No. ID 43/20
30 December 2020
Chief Executives/ Chief Executive Officer
All Insurers and Lloyd’s Asia Scheme Administrator Dear Sir/Madam AMENDMENTS TO INSURANCE RETURNS LEGISLATIONS The Monetary Authority of Singapore (“MAS”) has made amendments to the following insurance returns legislations:
(a) Insurance (Lloyd’s Asia Scheme) Regulations, including Forms and Annexes and Notes to the Forms Used for the Purposes of the Insurance (Lloyd's Asia Scheme) Regulations; (b) MAS Notice 129 Insurance Returns (Accounts and Statements); (c) MAS Notice 130 Insurance Returns (Accounts and Statements) for Captive Insurers; (d) MAS Notice 131 Insurance Returns (Accounts and Statements) for Special Purpose Reinsurance Vehicles; (e) MAS Notice 212 Insurance Returns (Accounts and Statements) for Marine Mutual Insurers; and (f) MAS Notice 213 Insurance Returns (Accounts and Statements) for Financial Guarantee Insurers, and cancelled MAS Notice 119 Electronic Submission of Returns. Conversion of Hardcopy Submissions to Electronic Submissions 2 MAS earlier issued Circular No. ID 10/19 dated 14 August 2019 on Conversion of Hardcopy Submissions to Electronic Submissions. In the Circular, it was mentioned that MAS will make consequent amendments to the relevant Notices in due course. These amendments have now been introduced in the above-mentioned insurance returns legislations such that the hardcopy submission requirements for annual returns are now replaced with electronic submission (via email) requirements. MAS’ expectations in Circular 10/19 on the operational details for the submission of documents via email will continue to apply to these returns, with further specific expectations set out in the Annex. Net Income of Participating Fund 3 MAS had earlier amended the Insurance (Valuation and Capital) Regulations (“V&C Regs”) in March 2020 to provide clarity on the 1/9th rule and tax treatment of the participating fund. MAS has now made corresponding amendments to Annex A2-4 of MAS Notice 129 for statutory reporting purposes.

4 As Annex A2-4 of MAS Notice 129 provides useful information on the movements of the participating surplus account, MAS has amended MAS Notice 130 to introduce the requirement for life and composite captive insurers to submit a similar Annex for their annual returns. Other Amendments to Enhance Clarity 5 MAS has introduced the following amendments to enhance the clarity of the requirements in the insurance returns legislations mentioned in paragraph 1:

• To clarify that the frequency of submission for “Quarterly Returns”, “Other Annual
  Returns” and “Annual Returns”;
• To clarify that the definition of “quarter” in respect of a newly licensed insurer (or
  syndicate in the case of Lloyd’s Asia Scheme) begins from the date of its commencement of insurance business in Singapore;
• To clarify that any transfer to an insurance fund for the purpose of meeting the solvency
  requirement (or claims liabilities in the case of a Service Company registered under the Lloyd’s Asia Scheme) for that fund, and any withdrawal from an insurance fund under
  section 17(9) of the Insurance Act (or regulation 11(6) of the Insurance (Lloyd’s Asia
  Scheme) Regulations) must be reflected under "Surplus/ Retained earnings” of that fund; and
• To clarify the instructions for completion of Forms A7, A8 and A9 in respect of direct
  composite insurers, composite reinsurers and composite captive insurers. Cancellation of MAS Notice 119 6 MAS Notice 119 specifies the electronic facility for which insurers are required to lodge their returns as the MAS Network (MASNET). Given that the submission platform has already been set out in the respective insurance returns legislations mentioned in paragraph 1, this Notice is no longer applicable. MAS has therefore cancelled MAS Notice 119. 7 The Insurance (Lloyd’s Asia Scheme) (Amendment No. 2) Regulations 2020, the revised insurance returns Notices and the cancellation Notice for MAS Notice 119 are available on MAS website. If you have any further queries, please contact your company’s liaison officer in MAS. Thank you. Yours faithfully [sent via MASNET] DANIEL WANG EXECUTIVE DIRECTOR INSURANCE DEPARTMENT

Annex – Further Specific Expectations for Submission of Returns via Email
(a) The sender should state clearly in the cover email that he or she is authorised to make the submission of returns on behalf of the insurer. (b) Each return or report enclosed in the zip file should adopt the following naming convention: “FI Code_Company name_<Name of Return or Report>”. Please see examples in the table below:
Name of Return or Report Naming Covention
Form A7 FI Code_Company name_Form A7
Form A8 FI Code_Company name_Form A8
Form A9 FI Code_Company name_Form A9
Form L6 FI Code_Company name_Form L6
Form L8 FI Code_Company name_Form L8
Form L10 FI Code_Company name_Form L10
Form L11 FI Code_Company name_Form L11
Form G3 FI Code_Company name_Form G3
Form G4 FI Code_Company name_Form G4
Actuary's Report on Policy Liabilities in respect of General Business FI Code_Company name_Actuary Report_Gen Abstract of the Actuary's Report on Policy Liabilities in respect of General Business FI Code_Company name_Actuary Abstract_Gen Actuary's Report on Policy Liabilities in respect of Life Business FI Code_Company name_Actuary Report_Life Abstract of the Actuary's Report on Policy Liabilities in respect of Life Business FI Code_Company name_Actuary Abstract_Life Annual Report of Insurer Incorporated in Singapore FI Code_Company name_Annual Report Financial Statements prepared in accordance with Singapore Financial Reporting Standards in respect of Operations in Singapore FI Code_Company name_Annual Report Annual Report of Head Office in respect of Global Operations FI Code_Company name_HO Annual Report Note: Please do not combine 2 or more returns or reports into a single PDF document that is enclosed in the zip file.