Response to Consultation Paper on Proposed Equity Counter-Cyclical Adjustment for Insurers

Circular No: ID 10/25 25 August 2025 To Chief Executives All Licensed Insurers except for Captive Insurers, Marine Mutual Insurers and SPRVs All Designated Financial Holding Companies (Licensed Insurer) Dear Sir/Madam CONSULTATION PAPER ON PROPOSED EQUITY COUNTER-CYCLICAL ADJUSTMENT FOR INSURERS – RESPONSE TO FEEDBACK On 27 March 2025, MAS issued a consultation paper to seek feedback on the proposed equity counter-cyclical adjustment (CCA) and inclusion of additional criteria for Additional Tier 1 (AT1) and Tier 2 capital instruments forinsurers. 2 MAS would like to thank all respondentsfor their feedback on the proposals. We have carefully considered the comments received and our response for the proposed equity CCA is available on the MAS website (link). We plan to implement the equity CCA with effect from 1 January 2026. 3 MAS’ responses to the feedback received on the proposed additional criteria for AT1 and Tier 2 capital instruments for insurers under the RBC 2 framework will be covered in a subsequent response paper. 4 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