7. The Third Schedule to the principal Regulations is amended —
(a)
by deleting the words “paragraph 5” in paragraph 2 and substituting the words “paragraphs 3, 4 and 5”;
(b)
by deleting the word “The” in paragraphs 3 (1) and 4 (1) and substituting in each case the words “In the case of a registered insurer other than a reinsurer incorporated in Singapore, the”;
(c)
by inserting, immediately after sub-paragraph (1) of paragraph 3, the following sub-paragraph:
“(1A) In the case of a reinsurer incorporated in Singapore, the C1 requirement in respect of general business is calculated as follows:
(a)
in relation to an insurance fund established and maintained under the Act in respect of Singapore policies and in relation to assets and liabilities that do not belong to any insurance fund established and maintained under the Act (excluding the assets and liabilities of any of the reinsurer’s branches located outside of Singapore), the sum of —
(i)
the premium liability risk requirement calculated in accordance with sub-paragraphs (2) and (3); and
(ii)
the claim liability risk requirement calculated in accordance with sub-paragraphs (4) and (5);
(b)
in relation to an insurance fund established and maintained under the Act in respect of offshore policies, the highest of the following amounts:
(i)
$5 million;
(ii)
10% of the net premiums written by the fund in the preceding accounting period; and
(iii)
10% of the claims liabilities relating to the fund as at end of the preceding accounting period; and
(c)
in relation to the assets and liabilities of any of the reinsurer’s branches located outside of Singapore, the highest of the following amounts:
(i)
$5 million;
(ii)
10% of the net premiums written by the branches located outside of Singapore in the preceding accounting period; and
(iii)
10% of the claims liabilities relating to the branches located outside of Singapore as at end of the preceding accounting period.”; and
(d)
by inserting, immediately after sub-paragraph (1) of paragraph 4, the following sub-paragraph:
“(1A) In the case of a reinsurer incorporated in Singapore, the C1 requirement in respect of life business is calculated as follows:
(a)
in relation to an insurance fund established and maintained under the Act in respect of Singapore policies and in relation to assets and liabilities that do not belong to any insurance fund established and maintained under the Act (excluding the assets and liabilities of any of the reinsurer’s branches located outside of Singapore), the sum of —
(i)
the policy liability risk requirement calculated in accordance with sub-paragraphs (2) and (3); and
(ii)
the surrender value condition requirement calculated in accordance with sub-paragraphs (4) and (5);
(b)
in relation to an insurance fund established and maintained under the Act in respect of offshore policies, the higher of the following amounts:
(i)
the difference between —
(A)
a modified liability in respect of the policies of the fund, determined as —
(AA)
the product of the liability in respect of the policies of the fund determined in the manner provided in regulation 20 and 110%; or
(AB)
the sum of the liability in respect of the policies of the fund determined in the manner provided in regulation 20 and $5 million,
whichever is the higher; and
(B)
the liability in respect of the policies of the fund determined in the manner provided in regulation 20; and
(ii)
zero; and
(c)
in relation to the assets and liabilities of any of the reinsurer’s branches located outside of Singapore, the higher of the following amounts:
(i)
the difference between —
(A)
a modified liability in respect of policies written by the branches located outside of Singapore, determined as —
(AA)
the product of the liability in respect of policies written by the branches located outside of Singapore determined in the manner provided in regulation 20 and 110%; or
(AB)
the sum of the liability in respect of policies written by the branches located outside of Singapore determined in the manner provided in regulation 20 and $5 million,
whichever is the higher; and
(B)
the liability in respect of policies written by the branches located outside of Singapore determined in the manner provided in regulation 20; and