Insurance (Duties of Actuary) Regulations - Singapore Statutes Online

Insurance Act

(Chapter 142, Section 30(1A))

Insurance (Duties of Actuary) Regulations

Rg 3

G.N. No. S 495/1993

REVISED EDITION 1994

(1st January 1994)

[1st January 1994]

Citation

1. These Regulations may be cited as the Insurance (Duties of Actuary) Regulations.

Application

2. These Regulations shall apply to any actuary appointed under section 30(1A) of the Act by a direct insurer carrying on life insurance business.

Statutory valuation

3.—(1) The actuary shall value the actuarial and other policy liabilities of the insurer with respect to its life insurance business as at the end of each accounting period and any other matters specified in any direction that may be made by the Authority.

(2) The valuation under paragraph (1) shall be in accordance with generally accepted actuarial practice with such changes as may be determined by the Authority and any additional directions that may be made by the Authority.

(3) The valuation under paragraph (1) shall not be less than that determined based on the statutory minimum valuation basis specified in regulation 26 of the Insurance Regulations unless prior approval is obtained from the Authority and such valuation shall be adequate to meet all future liabilities of life policies.

[Rg 1.]

Premium rates

4.—(1) The actuary shall be responsible for the appropriateness of premium rates of life policies at any particular time.

(2) Where the premium rates of life policies are not appropriate at any particular time, the actuary shall correct any inadequacy in the premium rates as soon as practicable.

Surplus distribution

5. The actuary shall, before approving the yearly distribution of surplus under section 16(5) or (5A) of the Act, satisfy himself that the distribution of surplus to policyholders is fair and equitable, taking into account —

(a)	the statutory requirements under section 16(5) or (5A) of the Act;
(b)	equity between policyholders and shareholders;
(c)	equity among different generations of policyholders; and
(d)	the impact of new business on the surplus.

Investment policy

6. The actuary shall assist the insurer in the formulating of suitable investment policy, having regard to the nature and terms of policyholders’ liabilities and the availability of appropriate assets.

Solvency testing

7. The actuary shall assess the financial soundness of the insurer by conducting at the end of each accounting period a solvency testing of the insurance fund’s financial position under various economic conditions.

Report to board of directors

8.—(1) The actuary shall submit a written report to the board of directors of the insurer at least once during each financial year, in accordance with generally accepted actuarial practice, on the current financial position of the life insurance business in Singapore and the future financial condition of the insurer.

(2) The actuary shall, if required by the board of directors, explain in person to them the report submitted under paragraph (1).

Report to principal officer

9.—(1) The actuary shall report in writing to the principal officer of the insurer any matter which —

(a)	has come to the attention of the actuary in the course of carrying out his duties;
(b)	in the opinion of the actuary has any material adverse effect on the financial condition of the insurer in respect to its life insurance business; and
(c)	requires rectification by the insurer.

(2) The actuary shall forthwith send a copy of his report under paragraph (1) to the board of directors of the insurer or to any person designated by them as being responsible for the life insurance business in Singapore.

Report to Authority

10. Where the actuary is of the opinion that the insurer has failed to take appropriate steps to rectify any matter reported by him under regulation 9(1) within a reasonable time, the actuary shall forthwith send a copy of his report to the Authority and notify the board of directors of the insurer that he has done so.

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