Issuance of Consultation Paper and Quantitative Impact Study on Proposed General Insurance Catastrophe Risk Requirement

1 Circular No: ID 08/25 24 July 2025 To the Chief Executives All Licensed Insurers with general insurance business except for Captive Insurers, Marine Mutual Insurers and SPRVs Dear Sir/Madam ISSUANCE OF CONSULTATION PAPER AND QUANTITATIVE IMPACT STUDY ON PROPOSED GENERAL INSURANCE CATASTROPHE RISK REQUIREMENT The Monetary Authority of Singapore (MAS) has issued the consultation paper on Proposed General Insurance Catastrophe Risk Requirement for insurers with general business today. 2 MAS has been working with insurers writing general business on the proposed general insurance catastrophe risk requirement (“GI Cat risk charge”) to be incorporated under the RBC 2 framework. In April 2021, MAS issued a preliminary impact study and survey to all insurers writing general business. Since then, further work has been done culminating to a standardised flood scenario, calibrated to a 1-in-200 year event over a one-year period, for the Singapore Insurance Fund (SIF). The standardised flood scenario was included as part of the 2022 industry-wide stress testing exercise that significant insurers participated in. In October 2024, MAS sought further inputs from insurers on a set of proposed standardised scenarios as well as ‘Own Bespoke’ scenario via a survey. The feedback and results collected have helped MAS refine the calibration, and MAS has now issued proposals for public consultation and quantitative impact study (QIS) on the proposed GI Cat risk charge. 3 Insurers with general insurance business (except captives, Lloyd’s insurers, marine mutual insurers and SPRVs) are required to complete the QIS and are strongly encouraged to provide feedback on the consultation questions for both its SIF and Offshore Insurance Fund (OIF) in respect of general business. Foreign-headquartered licensed reinsurers that operate as branches or subsidiaries continue to be exempt from applying RBC 2 on its OIF business. These reinsurers do not need to complete the parts of the QIS and consultation questions relating to the OIF.

2 4 Please refer to Annex for a copy of the consultation paper. The consultation paper is also publicly available on the MAS website: https://www.mas.gov.sg/publications/consultations/2025/consultation-paper-on-proposed￾general-insurance-catastrophe-risk-requirement Any feedback to the consultation questions should be provided via the survey link (https://go.gov.sg/gicatriskcp). The submission deadline is 5 September 2025. 5 The excel workbook to be used for the QIS would be provided via MAS-TX. An insurer with general business should submit the completed excel workbook via MAS-TX by 5 September 2025. 6 If you have queries relating to the consultation paper and QIS, please contact your company’s liaison officer in MAS. Thank you. Yours faithfully [sent via MASNET] DANIEL WANG EXECUTIVE DIRECTOR INSURANCE DEPARTMENT

3 ANNEX Consultation Paper on Proposed General Insurance Catastrophe Risk Requirement RBC 2 - GI Cat Risk CP vF.pdf