Response to Consultation Paper on Proposed Inclusion of Additional Criteria for Additional Tier 1 and Tier 2 Capital Instruments for Insurers

Circular No: ID 12/25
9 October 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 INCLUSION OF ADDITIONAL CRITERIA FOR ADDITIONAL TIER 1 AND TIER 2 CAPITAL INSTRUMENTS 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 respondents for their feedback on the proposals. MAS’ responses to the feedback received on the proposed equity CCA for insurers under the RBC 2 framework were issued on 25 August 2025. We have carefully considered the remaining comments received and our response for the inclusion of additional criteria for AT1 and Tier 2 capital instruments is now available on the MAS website (link). 3 We plan to proceed with the proposal to recognise a capital instrument issued by insurer as AT1 or Tier 2 Capital under the RBC 2 framework if the capital instrument is sold only to a person that is not a retail investor in Singapore, with effect from 1 January 2026. After considering feedback from the industry, MAS has decided not to include point of non￾viability features in the AT1 and Tier 2 capital instruments within the RBC 2 framework, at this juncture. 4 Please contact your company’s liaison officer in MAS should you have anyqueries. Yours faithfully x [sent via MASNET] x DANIEL WANG EXECUTIVE DIRECTOR INSURANCE DEPARTMENT