SECOND SCHEDULE
Regulations 6(4)(a) and 7(2)(a)
Insurance Act
(Chapter 142)

Insurance
(Accounts and Statements)
Regulations

Matters to be Stated in Abstract
of Actuary’s Report

1.  The following matters are to be stated in the abstract of an actuary’s report on policy liabilities relating to life business for the purposes of regulation 6(4)(a):
(a)that the purpose of the report is to carry out an actuarial investigation into the valuation of policy liabilities relating to life business of the registered insurer as required under section 37(1)(a) of the Act;
(b)the name of the actuary, his professional qualifications and, where the actuary is an employee of the registered insurer or a related corporation, the capacity in which the actuary is acting;
(c)the accounting period to which the actuarial investigation into the valuation of the policy liabilities relates;
(d)confirmation that all requirements specified by the Authority for the valuation of policy liabilities relating to life business of a registered insurer in Singapore have been complied with, or if any requirements have not been complied with, the reasons for such non-compliance;
(e)the general principles and full details of the methods adopted in the valuation of policy liabilities of each type of business, including statements on the following matters:
(i)the appropriateness and accuracy of the data and the reliability of the valuation system;
(ii)the method used in deriving the policy liabilities for each type of business, and the aggregation and approximation made, if any;
(iii)the assumptions used in the valuation process, in particular, key assumptions such as discount rate, expenses, mortality rates, lapse rates and bonus rates (dividends).
2.  The following matters are to be stated in the abstract of an actuary’s report on policy liabilities relating to general business for the purposes of regulation 7(2)(a):
(a)that the purpose of the report is to carry out an actuarial investigation into the valuation of policy liabilities relating to general business of the registered insurer as required under section 37(1)(b) of the Act;
(b)the name of the actuary, his professional qualifications and, where the actuary is an employee of the registered insurer or a related corporation, the capacity in which the actuary is acting;
(c)the accounting period to which the actuarial investigation into the valuation of policy liabilities relates;
(d)confirmation that all requirements specified by the Authority for the valuation of policy liabilities relating to general business of a registered insurer in Singapore have been complied with, or if any requirements have not been complied with, the reasons for such non-compliance;
(e)the general principles and full details of the methods adopted in the valuation of premium liabilities and claim liabilities of each line of business, including statements on the following matters:
(i)the assumptions used in the valuation process;
(ii)the definitions of terms and expressions used in the report that may be ambiguous or subject to wide interpretation;
(iii)the data available, a view as to its appropriateness, steps taken by the actuary to validate the data and material adjustment to the data;
(iv)the manner of grouping of risks into lines of business and divisions of lines of business;
(v)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;
(f)the premium liabilities and claim liabilities for each line of business as described in Form 6 of the First Schedule, that the registered insurer underwrites for each insurance fund in the formats presented in Tables 1 and 2, respectively.
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Instructions for completion of Table 1:
1.  Under the column named “Line of Business”, the name of each line of business underwritten by the registered insurer shall be stated.
2.  Under the column named “Unearned Premium Reserves”, the unearned premium reserves for each line of business and for the insurance fund as a whole calculated for regulation 19(1)(a)(i) of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004) shall be stated.
3.  Under the column named “Best Estimate of Unexpired Risk Reserves (URR)”, the part of the unexpired risk reserves for each line of business and for the insurance fund as a whole calculated for regulation 19(1)(a)(ii)(A) of the Insurance (Valuation and Capital) Regulations 2004 shall be stated.
4.  “PAD” means any provision made for any adverse deviation from the expected experience.
5.  Under the column named “Provision for Adverse Deviations (PAD) of URR without Diversification”, the part of the unexpired risk reserves for each line of business calculated for regulation 19(1)(a)(ii)(B) of the Insurance (Valuation and Capital) Regulations 2004 shall be stated in the respective rows. For the row named “Fund Total”, it shall show the aggregate of values in the preceding rows that relate to individual lines of business.
6.  Under the column named “Fund PAD of URR”, the part of the unexpired risk reserves for the fund calculated for regulation 19(1)(a)(ii)(B) of the Insurance (Valuation and Capital) Regulations 2004 shall be stated in the row named “Fund Total”. For other rows relating to individual lines of business, the value shown in each line of business shall be derived by attributing the “Fund Total” value to each line of business. The value attributed to each line shall, however, not be less than zero.
7.  Under the column named “URR”, each entry shall be the sum of the entries in the columns named “Best Estimate of Unexpired Risk Reserves (URR)” and “Fund PAD of URR”.
8.  Under the column named “Premium Liabilities” and for the row named “Fund Total”, it shall reflect a value which is the higher of the value in the column named “Unearned Premium Reserves” or the column named “URR” for the same row. For other rows relating to individual lines of business, the value shown in each line of business shall be derived by attributing the “Fund Total” value to each line of business. The value attributed to each line shall, however, not be less than the value stated in the preceding column named “URR”.
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Instructions for completion of Table 2:
1.  Under the column named “Line of Business”, the name of each line of business underwritten by the registered insurer shall be stated.
2.  Under the column named “Best Estimate of Claim Liabilities”, the part of the claim liabilities relating to the best estimate portion for each line of business and for the insurance fund as a whole, calculated for regulation 19(1)(b)(i) of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004) shall be stated.
3.  “PAD” means any provision made for any adverse deviation from the expected experience.
4.  Under the column named “Provision for Adverse Deviations (PAD) of Claim Liabilities without Diversification”, the part of the claim liabilities for each line of business calculated for regulation 19(1)(b)(ii) of the Insurance (Valuation and Capital) Regulations 2004 shall be stated in the respective rows. For the row named “Fund Total”, it shall show the aggregate of values in preceding rows that relate to the individual lines of business.
5.  Under the column named “Fund PAD of Claim Liabilities”, the part of the claim liabilities for the fund calculated for regulation 19(1)(b)(ii) of the Insurance (Valuation and Capital) Regulations 2004 shall be stated in the row named “Fund Total”. For other rows relating to individual lines of business, the value shown in each line of business shall be derived by attributing the “Fund Total” value to each line of business. The value attributed to each line shall, however, not be less than zero.
6.  Under the column named “Claim Liabilities”, each entry shall be the sum of the entries in the columns named “Best Estimate of Claim Liabilities” and “Fund PAD of Claim Liabilities”.