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Chee Hong Tat on Insurance (Amendment) Bill

06:42 Min

Two days after the Government announced it was blocking the Income-Allianz deal on the grounds that the transaction was “not in the public interest”, it moved to urgently amend insurance laws in Parliament. Currently, the approval of the Monetary Authority of Singapore (MAS) is needed to obtain effective control or become a substantial shareholder of a licensed insurer incorporated in Singapore. MAS considers a range of criteria on prudential grounds, such as the financial strength and track record of the applicant and whether it is fit and proper. However, given that insurance co-operatives are a special category of insurers with a social mission, the proposed changes will allow the minister in charge of MAS to also consider the views of the minister responsible for administering the Co-operative Societies Act (CSA), for applications relating to an insurer that is either a co-operative or linked to one. The minister in charge of MAS will be allowed to impose conditions on an approval involving such applications. If approval is withheld, there will be no avenue for appeal. MAS Deputy Chairman Chee Hong Tat said the changes were being made on an urgent basis because German insurer Allianz's bid for a majority share in Income Insurance was "under active consideration" by Income's shareholders. He spoke in Parliament on Wednesday (Oct 16).

Two days after the Government announced it was blocking the Income-Allianz deal on the grounds that the transaction was “not in the public interest”, it moved to urgently amend insurance laws in Parliament. Currently, the approval of the Monetary Authority of Singapore (MAS) is needed to obtain effective control or become a substantial shareholder of a licensed insurer incorporated in Singapore. MAS considers a range of criteria on prudential grounds, such as the financial strength and track record of the applicant and whether it is fit and proper. However, given that insurance co-operatives are a special category of insurers with a social mission, the proposed changes will allow the minister in charge of MAS to also consider the views of the minister responsible for administering the Co-operative Societies Act (CSA), for applications relating to an insurer that is either a co-operative or linked to one. The minister in charge of MAS will be allowed to impose conditions on an approval involving such applications. If approval is withheld, there will be no avenue for appeal. MAS Deputy Chairman Chee Hong Tat said the changes were being made on an urgent basis because German insurer Allianz's bid for a majority share in Income Insurance was "under active consideration" by Income's shareholders. He spoke in Parliament on Wednesday (Oct 16).

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