Regulatory Alerts2023-12-08
Added
Update to MAS Notice 133 With Respect To Illiquidity Premium
The Monetary Authority of Singapore issued Circular No. ID 18/23 to update MAS Notice 133 regarding the illiquidity premium for licensed insurers. The revision reduces the illiquidity premium from 65 basis points to 50 basis points, effective 31 December 2023, as part of a regular review of calibration and credit spread movements. This adjustment applies specifically to insurers writing life business that satisfy the conditions outlined in Table 3A of the notice.
ONFIDENTIAL Circular No: ID 18/23 8 December 2023 To Chief Executives All Licensed Insurers Dear Sir/Madam UPDATE TO MAS NOTICE 133 WITH RESPECT TO ILLIQUIDITY PREMIUM (“IP”) MAS Notice 133 (“Notice 133”) on Valuation and Capital Framework for Insurers has been updated on 8 December 2023 to reflect the revision in IP from 65 bps to 50 bps in Appendix 3G. The IP is only applicable to an insurer writing life business who satisfies the conditions in the second column of Table 3A on page 17 of Notice 133. 2 The update is part of the regular review that MAS performs on the IP calibration and credit spread movements. This revision will take place with effect from 31 December 2023. The updated Notice 133 and amendment note can be accessed on the MAS website (https://www.mas.gov.sg/regulation/notices/notice-133). 3 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