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.
Guidelines
Last Revised Date: 06 March 2020
Guidelines on Use of Internal Models for Liability and Capital Requirements for Life Insurance Products Containing Investment Guarantees with Non-Linear Payouts [ID 01/13]
Guidelines for insurers seeking exemption to use internal models to determine the regulatory liability and capital requirements for life insurance products with investment guarantees which have non-linear payouts.
Valuation and Capital
Insurance Products and Business Types
Applies to:
Direct Insurer (Life)
,
Direct Insurer (Composite)
View Document
Guidelines on Use of Internal Models for Liability and Capital Requirements for Life Insurance Products Containing Investment Guarantees with Non-Linear Payouts [ID 01/13]
(656.8 KB)
These guidelines apply to all direct life insurers intending to develop and use internal models for insurance products with investment guarantees which have non-linear payouts (e.g. variable annuity policies).
They set out:
General application process for the exemption from relevant section in the Insurance (Valuation & Capital) Regulations so that the insurer may use internal models.
Conditions that an insurer should observe for MAS' assessment of internal model.
Information expected for application.
Minimum standards that an insurer is expected to observe for the use of internal model.
01 Apr 2013 Previous version dated 01 Apr 2013 (392.8 KB) takes effect. (Cancelled with effect from 31 Mar 2020)
Sets out the requirements under the risk-based capital framework for all licensed insurers, including the way in which assets and liabilities are to be valued.
Informs licensed insurers on changes to Notice 133.
Informs licensed insurers on changes to Notice 133.
Informs licensed insurers on changes to Notice 133.
Sets out the requirements under the risk-based capital framework for all licensed insurers, including the way in which assets and liabilities are to be valued.
Requirements and guidelines on the valuation and reporting of policy liabilities.