Regulatory Alerts2022-12-19
Added
Amendments to MAS Notice 133
The Monetary Authority of Singapore issued Circular No. ID 18/22 to update MAS Notice 133 regarding the valuation and capital framework for insurers. This revision reduces the illiquidity premium from 75 basis points to 65 basis points for life insurers meeting specific conditions. The change takes effect on 31 December 2022 as part of the regulator's regular calibration review.
ONFIDENTIAL Circular No: ID 18/22 19 December 2022 To Chief Executives All Licensed Insurers Dear Sir/Madam UPDATE TO MAS NOTICE 133 WITH RESPECT TO ILLIQUIDITY PREMIUM (“IP”) MAS Notice 133 (“Notice 133”) on Valuation and Capital Framework for Insurers has been updated on 19 December 2022 to reflect the revision in IP from 75 bps to 65 bps in Appendix 3G. The IP is only applicable to insurer writing life business who satisfies the conditions in the second column of Table 3A on page 17 of Notice 133. 2 The update is part of the regular review that MAS performs on the IP calibration and credit spread movements. This revision will take place with effect from 31 December 2022. The updated Notice 133 and amendment note can be accessed on the MAS website (https://www.mas.gov.sg/regulation/notices/notice-133). 3 Please contact your company’s liaison officer in MAS should you have any queries. Yours faithfully [sent via MASNET] DANIEL WANG EXECUTIVE DIRECTOR INSURANCE DEPARTMENT