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No. S 18

Insurance Act

(Chapter 142)

Insurance (Accounts and Statements) (Amendment) Regulations 2002

In exercise of the powers conferred by section 64 of the Insurance Act, the Monetary Authority of Singapore hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Insurance (Accounts and Statements) (Amendment) Regulations 2002 and shall come into operation on 8th January 2002.

Amendment of regulation 4

2. Regulation 4(1) of the Insurance (Accounts and Statements) Regulations (Rg 2) (referred to in these Regulations as the principal Regulations) is amended by deleting the words “section 39 (1)” and substituting the words “section 37 (1)”.

New regulation 4A

3. The principal Regulations are amended by inserting, immediately after regulation 4, the following regulation:

“Returns on actuarial investigation of general business

4A.—(1) The abstract of the actuary’s report and the certificate relating thereto which an insurer registered in respect of general business is required to lodge under section 37(1) of the Act shall be prepared in accordance with this regulation.

(2) The abstract of the actuary’s report shall be prepared in compliance with the requirements of the Fourth Schedule and shall be signed by the actuary.

(3) The certificate to be prepared and signed by the actuary shall state the actuary’s opinion on the amount of premium and claims liabilities in respect of insurance funds and shall certify, as set out in the Fifth Schedule, that the valuation was done in accordance with the requirements stipulated in the Insurance Regulations (Rg 1).”.

Amendment of regulation 8

4. Regulation 8 (3) of the principal Regulations is amended by deleting the words “Fourth Schedule” and substituting the words “Sixth Schedule”.

Amendment of regulation 9

5. Regulation 9 (1) of the principal Regulations is amended by deleting the words “Fifth Schedule” and substituting the words “Seventh Schedule”.

Deletion and substitution of regulation 10

6. Regulation 10 of the principal Regulations is deleted and the following regulation substituted therefor:

“Deadlines for submission of returns, reports and statements

10. Unless otherwise allowed by the Authority, a document to be lodged by an insurer shall be lodged —

(a)

within 3 months after the date to which the document relates;

(b)

in the case of the actuary’s report required to be lodged under regulation 4(3), within 6 months after the date to which the document relates;

(c)

in the case of the actuary’s report and certificate required to be lodged under regulation 4A —

(i)	in respect of the year ending 2001, within 6 months after the date to which the document relates; and
(ii)	in respect of any later year, within 3 months after the date to which the document relates; and

(d)

in the case of an account or statement for an accounting period, the end of that period.”.

Amendment of First Schedule

7. The First Schedule to the principal Regulations is amended —

(a)

by inserting, immediately after Note 4 under the heading “Notes to Form 1 (to be shown separately for each class of business,)” in Part I (page 17), the following:

“

Note 5

In respect to financial guarantee business —

(a) where premiums are payable in instalments, the present value of future instalment premiums payable in a future accounting period and the discount rate used; and

(b) where the premiums are payable in full at the commencement of the policy of insurance, the full amount of the premiums payable in the accounting period in which the policy commences.

”;

(b)

by deleting paragraph 11 under the heading “ Instructions for completion of Form 1 and Schedules 1A to 1F” in Part I (page 18) and substituting the following paragraph:

“11. “Loss reserves” consists of provisions set up for claims reported but not yet determined, claims incurred but not reported (IBNR) and claims incurred but not enough reported (IBNER), as well as all expenses associated with the settlement of such claims.”;

(c)

by deleting paragraph 2 under the heading “ Instructions for completion of Form 6” in Form 6 in Part III (page 40) and substituting the following paragraph:

“2. “Loss reserves” consists of provisions set up for claims reported but not yet determined, claims incurred but not reported (IBNR) and claims incurred but not enough reported (IBNER), as well as all expenses associated with the settlement of such claims.”;

(d)

by deleting the words “In the case of all long-term policies, where the policy period exceeds one year, such premiums shall be properly apportioned to the respective financial periods.” in paragraph 3 under the heading “Instructions for completion of Form 7” in Form 7 in Part III (page 47); and

(e)

by deleting paragraph 12 under the heading “ Instructions for completion of Form 7” in Form 7 in Part III (page 48) and substituting the following paragraph:

“12. “Loss reserves” consists of provisions set up for claims reported but not yet determined, claims incurred but not reported (IBNR) and claims incurred but not enough reported (IBNER), as well as all expenses associated with the settlement of such claims.”.

Amendment of Second Schedule

8. Part I of the Second Schedule to the principal Regulations is amended by deleting paragraph 14 under the heading “Instructions for completion of Form 8” in Form 8 (page 52) and substituting the following paragraph:

“14. “Loss reserves” consists of provisions set up for claims reported but not yet determined, claims incurred but not reported (IBNR) and claims incurred but not enough reported (IBNER), as well as all expenses associated with the settlement of such claims.”.

New Fourth and Fifth Schedules

9. The principal Regulations are amended —

(a)

by inserting, immediately after the Third Schedule, the following Schedules:

“THE SCHEDULE

Regulation 4A(2)

Returns on Actuarial Investigations of Insurance Policy Liabilities in Respect of General Business

Matters to be stated in abstract of actuary’s report

1. The date to which the investigation relates.

2. The name of the actuary and, where the actuary is an employee of the insurer or a related company, the capacity in which the actuary is acting.

3. That the purpose of the report is to value the insurance policy liabilities of the insurer in compliance with section 37 (1) (b) of the Act.

4. Confirmation that all requirements specified by the Authority for the valuation of insurance policy liabilities of an insurer in Singapore have been complied with, or if any requirements have not been complied with, the reasons for such non-compliance.

5. The general principles and full details of the methods adopted in the valuation of premium liabilities and claims liabilities of each line of business, including statements on the following matters:

(a)	the assumptions used in the valuation process;
(b)	the definitions of terms and expressions used in the report that may be ambiguous or subject to wide interpretation;
(c)	the data available, a view as to its appropriateness, steps taken by the actuary to validate the data and material adjustment to the data;
(d)	the manner of grouping of risks into lines of business and divisions of lines of business; and
(e)	the methods used, and if these are different from the preceding accounting period, justification for the change in methods and quantification of the financial implications arising from the change in methods.

6. The best estimate and provision for adverse deviation in respect of premium liabilities and claims liabilities must be reported separately for each line of business.

THE SCHEDULE

Regulation 4A(3)

actuary’s certificate

NAME OF INSURER

_________________

ACTUARIAL INVESTIGATION AS AT

____________________________________

I have conducted an investigation into the valuation of general insurance policy liabilities as required under section 37 of the Insurance Act (Cap. 142) and confirm that the valuation is in accordance with the requirements stipulated in the Insurance Regulations (Rg 1), subject to the qualifications stated below ¹. I certify these amounts, net of reinsurance, as follows:

¹Qualifications (if none, state “none”):

Item

Singapore Insurance Fund

Offshore Insurance Fund

Premium Liabilities

Claims Liabilities

Insurance Policy Liabilities

____________________________________________

Name of actuary: ________________

Signature: ________________

Date: ________________”; and

(b)

by renumbering the existing Fourth and Fifth Schedules as the Sixth and Seventh Schedules, respectively.

Made this 4th day of January 2002.

KOH YONG GUAN

Managing Director,
Monetary Authority of Singapore.

[ID 05.1 Vol. 27; AG/LEG/SL/142/2002/1 Vol. 1]