Regulatory Alerts2020-03-06
Added
Guidelines on Use of Internal Models for Liability and Capital Requirements for Life Insurance Products Containing Investment Guarantees with Non-Linear Payouts
The Monetary Authority of Singapore issued these guidelines to establish the framework for direct life insurers seeking exemption to use internal models for determining regulatory liability and capital requirements. The document outlines the general application process, specific conditions for MAS assessment, required information, and minimum standards for products with non-linear investment guarantees such as variable annuities. These requirements replace the previous version effective from March 31, 2020, ensuring compliance with the risk-based capital framework for valuation and capital adequacy.