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MAS
Releases Consultation Paper on Amendments to Insurance Act
Source: The Monetary Authority of Singapore
May
26, 2003
The
Monetary Authority of Singapore (MAS) on May 26, 2003 released
a consultation paper on proposed amendments to the Insurance
Act (IA) and invites comment from the public.
2. The proposed amendments in IA will see the introduction
of frameworks for risk-based capital and health insurance.
MAS has previously issued consultation papers on the two issues
and this new consultation paper discusses how they will be
integrated into the Insurance Act:
· Risk-based capital framework: The framework
seeks to build a capital requirement that reflects relevant
risks faced by the insurance companies so that capital will
serve as an effective buffer to absorb fluctuations in asset
and liability values. It will also provide clear information
on the financial strength of insurance companies and facilitate
early and progressive intervention by MAS.
· Health insurance regulatory framework: This
aims to strengthen the prudential and market conduct requirements
for health insurers and also help ensure that they are able
to meet their obligations.
3. An authorisation framework to govern the cross-border supply
of reinsurance will also be put into place. This framework,
which sets the minimum requirements for cross-border insurers
will allow MAS to provide oversight on the rendering of reinsurance
services on companies that do not have a physical presence
in Singapore.
4. The amendments to the IA are expected to take effect on
1 Jan 2004. Consultation on the relevant Regulations will
be carried out in the third quarter of this year.
5. The consultation paper is posted on the MAS website, www.mas.gov.sg
and comments should reach MAS by 27 June 2003. Please submit
your
comments to ia_amdt@mas.gov.sg.
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