Regulatory Alerts2024-04-24
Added · Updated
Bank Covenants in Lieu of Deposits
Authorised reinsurers may lodge a bank covenant with the Monetary Authority of Singapore in lieu of the deposit required under section 34D(1) of the Insurance Act. The bank must be licensed in Singapore, and the covenant must be executed under the bank's common seal or power of attorney, accompanied by specific certifications. The covenant requires the bank to deposit the highest of S$2 million, 30% of the insurer's gross premiums, or 30% of its gross liabilities if triggering events such as winding-up or loss of license occur. The notice takes immediate effect and cancels MAS Notice IA/PP-N01.1 dated 26 October 2005.
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