Regulatory Alerts2024-06-14
Added
Update to MAS Notice 133 With Respect To Illiquidity Premium
The Monetary Authority of Singapore issued Circular No. ID 10/24 to update MAS Notice 133 regarding the valuation and capital framework for insurers. The revision reduces the illiquidity premium from 50 basis points to 35 basis points for qualifying life insurers, effective 30 June 2024. This adjustment reflects the regulator's regular review of illiquidity premium calibration and credit spread movements.
ONFIDENTIAL Circular No: ID 10/24 14 June 2024 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 14 June 2024 to reflect the revision in IP from 50 bps to 35 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 30 June 2024. 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