Insurance (Accounts and Statements) (Amendment) Regulations 2004

No. S 31

Insurance Act

(Chapter 142)

Insurance (Accounts and Statements) (Amendment) Regulations 2004

In exercise of the powers conferred by sections 36, 37, 52(1) and 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 2004 and shall come into operation on 21st January 2004.

New regulation 2

2. The Insurance (Accounts and Statements) Regulations (Rg 2) (referred to in these Regulations as the principal Regulations) are amended by inserting, immediately after regulation 1, the following regulation:

“Definitions

2. In these Regulations, unless the context otherwise requires —

“accounting period”, in relation to a captive insurer or Protection and Indemnity Club, means the financial year of the insurer;

“principal officer” has the same meaning as in section 31(11) of the Act;

“Protection and Indemnity Club” means an insurer registered under section 8 of the Act as a direct insurer to carry on general class of insurance business who is permitted under his licence to carry on protection and indemnity insurance business only;

“protection and indemnity insurance business” means the business of insuring against third party liabilities and expenses arising from owning or operating ships as principals.”.

Amendment of regulation 3

3. Regulation 3 of the principal Regulations is amended —

(a)

by deleting paragraphs (1), (2) and (3) and substituting the following paragraphs:

“(1) For the purpose of section 36(1) of the Act, a registered insurer shall lodge statements of account and other statements in accordance with this regulation.

(1A) The forms mentioned in this regulation are those set out in the First Schedule.

(1B) A form prescribed by this regulation shall be completed in accordance with such directions as may be specified in the form or by the Authority.

(2) An insurer registered to carry on general business shall lodge, for each accounting period, for each insurance fund established and maintained under the Act in respect of its general business —

(a)	a fund balance-sheet as at the end of that accounting period in Form 1;
(b)	a fund revenue account in Form 6; and
(c)	a statement in Form 7 giving as regards policies belonging to general business particulars as to premiums, claims, underwriting results and operating results during that accounting period.

(3) A direct insurer registered to carry on life business shall lodge, for each accounting period, for each insurance fund established and maintained by the insurer under the Act —

(a)

a fund balance-sheet as at the end of that accounting period in Form 1;

(b)

a fund revenue account in Form 2;

(c)

separate statements in Form 3 for policies issued to individuals and in Form 4 for policies issued to groups of individuals, giving as regards policies belonging to each type of life business as required in the forms —

(i)	particulars on the issue of new policies;
(ii)	the termination and transfers of policies to or from the register of Singapore policies or offshore policies, as the case may be, during that accounting period; and
(iii)	the business in force as at the end of that accounting period; and

(d)

a statement in Form 5 giving particulars on premiums and commissions incurred during that accounting period.

(3A) A direct insurer registered to carry on life business shall lodge, for each accounting period, each of the forms set out in paragraph (3) for the aggregate of all insurance funds established and maintained by the insurer in respect of Singapore policies which are non-investment-linked policies.

(3B) A reinsurer registered to carry on life business shall lodge, for each accounting period, for each insurance fund established and maintained under the Act in respect of its life business —

(a)

a fund balance-sheet as at the end of that accounting period in Form 1;

(b)

a fund revenue account in Form 2; and

(c)

a statement in Form 3A giving as regards policies belonging to each type of life business —

(i)	particulars on the issue of new policies;
(ii)	the termination and transfers of policies to or from the register of Singapore policies or offshore policies, as the case may be, during that accounting period; and
(iii)	the business in force as at the end of that accounting period.

(3C) A captive insurer registered to carry on life business shall lodge, for each accounting period, for each insurance fund established and maintained by the insurer under the Act —

(a)	a fund balance-sheet as at the end of that accounting period in Form 1; and
(b)	a fund revenue account in Form 2.”;

(b)

by deleting the words “an insurer incorporated or established in Singapore” in paragraph (4) and substituting the words “a registered insurer incorporated in Singapore”;

(c)

by deleting the words “accounting period” wherever they appear in paragraphs (4) and (5) and substituting in each case the words “financial year”;

(d)

by deleting the words “an insurer incorporated or established in Singapore” in paragraph (5) and substituting the words “a registered insurer (other than a captive insurer) incorporated in Singapore”; and

(e)

by deleting the words “accounting period by an insurer” in paragraph (6) and substituting the words “financial year by a registered insurer (other than a captive insurer)”.

Deletion and substitution of regulation 4

4. Regulation 4 of the principal Regulations is deleted and the following regulation substituted therefor:

“Returns on actuarial investigation of life business

4.—(1) The forms mentioned in this regulation are those set out in the Fifth Schedule.

(2) A form prescribed by this regulation shall be completed in accordance with such directions as may be specified in the form or by the Authority.

(3) For the purpose of section 37(1)(c) of the Act, an insurer registered to carry on life business shall prepare, for each accounting period, an abstract of the report of the investigation into the financial condition of the insurer which shall include —

(a)

the matters set out in Part I of the Fifth Schedule;

(b)

a summary and valuation of policies —

(i)	in the case of a direct insurer, in Form 13; or
(ii)	in the case of a reinsurer, in Form 13A,

in respect of the insurer’s life business as at the end of that accounting period for —

(A)	the aggregate of all insurance funds established and maintained in respect of Singapore policies; and
(B)	the aggregate of all insurance funds established and maintained in respect of offshore policies; and

(c)

a valuation result and distribution of surplus in Form 14 for —

(i)	each insurance fund established and maintained by the insurer under the Act; and
(ii)	the aggregate of all insurance funds established and maintained in respect of non-investment-linked policies that are Singapore policies,

as at the end of that accounting period.

(4) For the purpose of section 37(1)(c) of the Act, the actuary making the investigation shall, in the certificate relating to the abstract —

(a)	state that he is satisfied as to the accuracy of the valuations of the liabilities in respect of insurance policies made for the purposes of the investigation;
(b)	where the actuary is in the direct employment of the insurer, state that he has satisfied himself as to the accuracy of the data on which the valuations are based;
(c)	state that he is satisfied that the values of liabilities in respect of insurance policies determined in the investigation adequately represent the obligations of the insurer; and
(d)	state and quantify the financial impact of any material event which occurs after the end of the accounting period but before the date the certificate is lodged to the Authority.

(5) An insurer registered to carry on life business who had an investigation made to it in accordance with section 37(1)(a) of the Act shall lodge, for each accounting period —

(a)	statements as to policies and premiums as at the end of that accounting period set out in Part III of the Fifth Schedule;
(b)	where the actuary making the investigation referred to in section 37(1)(a) of the Act is not in the direct employment of the insurer but is acting under an arrangement with the insurer, a separate certification signed by or on behalf of the principal officer of the insurer stating the precaution taken by the insurer to ensure the accuracy of the data on which the valuations are based; and
(c)	where the insurer is a direct insurer, an actuary’s report, signed by the actuary, based on the solvency testing carried out by the actuary under the Insurance (Duties of Actuary) Regulations (Rg 3).”.

Amendment of regulation 5

5. Regulation 5 of the principal Regulations is amended —

(a)	by deleting the word “There” and substituting the words “For the purpose of section 36(1) of the Act, there”; and
(b)	by deleting the words “an insurer” and substituting the words “a registered insurer who is a direct insurer”.

New regulation 5A

6. The principal Regulations are amended by inserting, immediately after regulation 5, the following regulation:

“Annual report

5A.—(1) Where the financial year of a registered insurer covers the same period as the accounting period, the insurer shall be exempt from submitting its annual report to the Authority under section 36(13) of the Act, subject to the condition that the insurer shall lodge the annual report with the Authority within the period specified in regulation 10(1).

(2) Where the financial year of a registered insurer does not cover the same period as the accounting period, the insurer shall lodge with the Authority a copy of its annual report for each financial year.

(3) In this regulation, “annual report”, in relation to a registered insurer, means any report for each financial year submitted to the members of the insurer and any statement of accounts so submitted with respect to that year.”.

Amendment of regulation 6

7. Regulation 6 of the principal Regulations is amended —

(a)	by deleting the words “sections 36 and 37” in paragraph (3) and substituting the words “section 36”; and
(b)	by deleting the words “regulation 4(3)” in paragraph (4) and substituting the words “regulation 4 (5)(c)”.

Deletion and substitution of regulation 7

8. Regulation 7 of the principal Regulations is deleted and the following regulation substituted therefor:

“Valuation of assets and liabilities

7. The value or amount stated for any asset or liability in any document that an insurer is required to lodge under these Regulations (other than regulation 3(4), (5) and (6)) shall be the value or amount as determined in accordance with any applicable valuation regulation under the Insurance Regulations (Rg 1) or the Insurance (Investment-Linked Life Insurance) Regulations (Rg 4).”.

Amendment of regulation 8

9. Regulation 8 of the principal Regulations is amended —

(a)

by deleting paragraph (2) and substituting the following paragraph:

“(2) At least one of the copies referred to in paragraph (1) shall be an original copy and shall bear the signature of —

(a)	2 directors of the insurer; and
(b)	the principal officer of the insurer or an officer signing on behalf of the principal officer.”; and

(b)

by deleting the words “regulation 3 (2)(a) or (b)” in paragraph (3) and substituting the words “regulation 3”.

Deletion and substitution of regulations 9 and 10

10. Regulations 9 and 10 of the principal Regulations are deleted and the following regulations substituted therefor:

“Audit and auditor’s report

9.—(1) For the purpose of section 36(9) of the Act, the auditor shall prepare a report and a supplementary report in the forms set out in the Ninth Schedule in relation to the audit conducted for the accounting period.

(2) For the purpose of section 36(1) of the Act, a registered insurer shall lodge, for each accounting period, information on external auditors conducting the audit for that period in the form set out in the Ninth Schedule.

(3) The supplementary report and the information on external auditors shall be excepted from section 39(1) and (3) of the Act.

Deadlines for submission of returns, reports and statements

10.—(1) Any document to be lodged by a registered insurer (other than a captive insurer) shall be lodged with the Authority —

(a)	in the case of the statement on the solvency margin of the insurer’s global business referred to in regulation 3(6), within 6 months from the date to which the statement relates;
(b)	in the case of the actuary’s report referred to in regulation 4(5)(c), within 6 months from the date to which the report relates;
(c)	in the case of the annual report referred to in regulation 5A of a registered insurer incorporated outside Singapore, within 6 months from the date to which the report relates; and
(d)	in any other case, within 3 months from the date to which the document relates.

(2) Any document to be lodged by a captive insurer shall be lodged with the Authority within 6 months from the date to which the document relates.”.

Amendment of First Schedule

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

(a)	by deleting the words “Regulation 3(1)” in the 2nd line and substituting the words “Regulation 3(1A)”;
(b)	by deleting the words “PART I”;
(c)	by deleting the words “PART II”; and
(d)	by deleting the words “PART III”.

Amendment of Second Schedule

12. The Second Schedule to the principal Regulations is amended —

(a)	by deleting the words “SECOND SCHEDULE” in the 1st line;
(b)	by deleting the words “Regulation 3(1)” in the 2nd line and substituting the words “Regulation 3(1A)”;
(c)	by deleting the words “PART I”;
(d)	by deleting the words “PART II”; and
(e)	by deleting the words “PART III”.

Amendment of Fifth Schedule

13. The Fifth Schedule to the principal Regulations is amended by deleting the words “Regulations 4 (2)” in the 2nd line and substituting the words “Regulations 4”.

Amendment of Eighth Schedule

14. The Eighth Schedule to the principal Regulations is amended —

(a)	by deleting the words “section 16 or 17” and substituting the words “section 17 or 18”; and
(b)	by deleting the words “section 18” and substituting the words “section 19”.

Amendment of Ninth Schedule

15. The Ninth Schedule to the principal Regulations is amended —

(a)

by deleting the words “Regulation 9(1)” in the 2nd line and substituting the words “Regulation 9”;

(b)

by deleting the words “APPOINTED UNDER SECTION 38 (4)” in the heading of the auditor’s report and substituting the words “APPROVED UNDER SECTION 36 (6)”;

(c)

by inserting, immediately after the words “statutory returns” in paragraph 2(a) of the auditor’s report, the words “(other than Form 12)”;

(d)

by deleting the words “section 17” in paragraph 3(a) of the auditor’s report and substituting the words “section 18”;

(e)

by deleting the words “section 16 of the Insurance Act, and section 16(17) has been complied with” in paragraph 3(b) of the auditor’s report and substituting the words “section 17 of the Insurance Act, and section 17(16) has been complied with”;

(f)

by deleting the words “section 18” in paragraph 3(c) of the auditor’s report and substituting the words “section 19”;

(g)

by deleting the words “section 19(1)” in paragraph 3(d) of the auditor’s report and substituting the words “section 20(1)”;

(h)

by deleting the words “section 38(2)” in paragraph 2 of the auditor’s supplementary report and substituting the words “section 36”; and

(i)

by inserting, at the end thereof, the following paragraph:

Information on External Auditors

The following information on an insurer’s external auditors is required:

(1)	Name of audit firm
(2)	Date of appointment
(3)	Name and qualification of audit team leader
(4)	Number of members in the audit team
(5)	Amount of fees paid.”.

[G.N. Nos. S 18/2002; S 467/2002; S 588/2002; S 678/2003]

Made this 19th day of January 2004.

KOH YONG GUAN

Managing Director,
Monetary Authority of Singapore.

[ID 05.1 V.31; AG/LEG/SL/142/2002/1 Vol. 4]

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