Insurance (Valuation and Capital) Regulations 2004

No. S 498

Insurance Act

(CHAPTER 142)

Insurance (Valuation and Capital) Regulations 2004

In exercise of the powers conferred by sections 9(1)(c), 17, 18 and 64(1) of the Insurance Act, the Monetary Authority of Singapore hereby makes the following Regulations:

PART I

PRELIMINARY

Citation and commencement

1. These Regulations may be cited as the Insurance (Valuation and Capital) Regulations 2004 and shall come into operation on 23rd August 2004.

Definitions

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

“Accounting Standards” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);

“aggregate limit”, in relation to a contract of reinsurance entered into between an SPRV and a ceding insurer, means the maximum amount payable to the ceding insurer under that contract;

[S 845/2018 wef 01/01/2019]

[Deleted by S 233/2013 wef 18/04/2013]

“appointed day” means the date of commencement of these Regulations;

[Deleted by S 233/2013 wef 18/04/2013]

[Deleted by S 137/2020 wef 31/03/2020]

“ceding insurer” means an insurer that enters into a contract of reinsurance with an SPRV;

[S 845/2018 wef 01/01/2019]

“collective investment scheme” has the same meaning as in section 2(1) of the Securities and Futures Act (Cap. 289);

[Deleted by S 137/2020 wef 31/03/2020]

“counterparty” means any person who is under a financial obligation to the insurer;

“debt security” includes any debenture, bond or note;

[Deleted by S 137/2020 wef 31/03/2020]

“equity security” includes any stock, share, depository receipt or unit in a collective investment scheme;

[Deleted by S 137/2020 wef 31/03/2020]

“fully funded”, in relation to an SPRV, means —

(a)

in the case of any contract of reinsurance entered into between the SPRV and a ceding insurer that specifies an aggregate limit, that the assets held on trust or otherwise held under the terms of that contract by or on behalf of the SPRV for the benefit of the ceding insurer are not at any time less than the potential liabilities of the SPRV under all reasonably foreseeable scenarios, taking into account the aggregate limit of that contract and the expenses that the SPRV expects to incur; and

(b)

in the case of any contract of reinsurance entered into between the SPRV and a ceding insurer that does not specify an aggregate limit, that the assets held on trust or otherwise held under the terms of that contract by or on behalf of the SPRV for the benefit of the ceding insurer are not at any time less than the potential liabilities of the SPRV under all reasonably foreseeable scenarios, taking into account the obligations of the SPRV towards the ceding insurer under that contract and the expenses that the SPRV expects to incur;

[S 845/2018 wef 01/01/2019]

[Deleted by S 137/2020 wef 31/03/2020]

“general fund” means an insurance fund established and maintained by a licensed insurer under section 17(1) of the Act for general business;

[S 137/2020 wef 31/03/2020]

[Deleted by S 137/2020 wef 31/03/2020]

“insurance securitisation”, in relation to an SPRV, means any debt or other financing arrangement entered into by the SPRV with an investor, where repayment of the principal or interest (or both) to the investor is contingent upon the occurrence or non-occurrence of an event, upon which the ceding insurer is exposed to financial loss under contracts of insurance or reinsurance that the ceding insurer has issued;

[S 845/2018 wef 01/01/2019]

“investment-linked fund” means an insurance fund for investment-linked policies established and maintained under section 17(1A) of the Act;

[Deleted by S 137/2020 wef 31/03/2020]

“MAS Notice 129” means the notice commonly known as MAS Notice 129 issued by the Authority under sections 36(3), 36(3A), 37(1)(b) and 64(2) of the Act, as amended from time to time, and includes any notice that replaces it;

[S 845/2018 wef 01/01/2019]

“MAS Notice 130” means the notice commonly known as MAS Notice 130 issued by the Authority under sections 36(3), 36(3A) and 64(2) of the Act, as amended from time to time, and includes any notice that replaces it;

[S 845/2018 wef 01/01/2019]

“MAS Notice 131” means the notice commonly known as MAS Notice 131 issued by the Authority under sections 36(3), 36(3A) and 64(2) of the Act, as amended from time to time, and includes any notice that replaces it;

[S 845/2018 wef 01/01/2019]

“MAS Notice 133” means the notice commonly known as MAS Notice 133 issued by the Authority under sections 18 and 64(2) of the Act, as amended from time to time, and includes any notice that replaces it;

[S 137/2020 wef 31/03/2020]

“MAS Notice 212” means the notice commonly known as MAS Notice 212 issued by the Authority under sections 36(3), 36(3A) and 64(2) of the Act, as amended from time to time, and includes any notice that replaces it;

[S 845/2018 wef 01/01/2019]

“minimum condition liability”, in relation to a participating fund, means the sum of —

(a)	the liability (net of reinsurance) in respect of each non-participating policy of the fund determined in the manner provided in regulation 20(1); and [S 845/2018 wef 01/01/2019]
(b)	the liability (net of reinsurance) in respect of each participating policy of the fund determined in accordance with the manner provided in regulation 20(1) for determining the liability (net of reinsurance) in respect of a non-participating policy, but does not include any provision for non-guaranteed benefits; [S 845/2018 wef 01/01/2019]

[Deleted by S 137/2020 wef 31/03/2020]

“mortgage insurance policy” means a policy that protects against losses on mortgage loans arising from default by borrowers;

[S 733/2007 wef 01/01/2008]

“mortgage insurer” means an insurer licensed under the Act which has liabilities in respect of mortgage insurance policies;

[S 733/2007 wef 01/01/2008]

[S 233/2013 wef 18/04/2013]

“net premiums written” means the net amount of premiums written by an insurer after deduction of return premiums and payments in respect of reinsurance business ceded;

[S 733/2007 wef 01/01/2008]

“non-participating fund” means an insurance fund established and maintained under section 17(2) of the Act which comprises wholly of non-participating policies;

“ordinary share” means any share other than a preference share;

“participating fund” means an insurance fund established and maintained under section 17(2) of the Act which comprises wholly or partly of participating policies;

“policy assets”, in relation to a participating fund, means the total assets of the fund as at valuation date less —

(a)	the balance in the surplus account established and maintained in accordance with regulation 22; and
(b)	all liabilities of the fund (except liabilities in respect of the policies comprised in the participating fund); [S 845/2018 wef 01/01/2019]

[Deleted by S 112/2012 wef 28/03/2012]

“preference share”, in relation to a licensed insurer incorporated in Singapore, has the same meaning as in section 4(1) of the Companies Act (Cap. 50);

[S 233/2013 wef 18/04/2013]

[Deleted by S 137/2020 wef 31/03/2020]

“reinsurance recoverables” means any amount that an insurer is entitled to recover, but has yet to recover, from its reinsurance counterparty in respect of claims that have been paid by the insurer;

“share”, in relation to a licensed insurer incorporated in Singapore, has the same meaning as in section 4(1) of the Companies Act (Cap. 50);

[S 233/2013 wef 18/04/2013]

“short-term policy” means —

(a)	a short-term accident and health policy; or
(b)	a policy issued by a licensed insurer as part of the insurer’s life business that has a remaining term of not more than one year in the determination of its liabilities in accordance with MAS Notice 133;

[S 137/2020 wef 31/03/2020]

“Special Purpose Reinsurance Vehicle” or “SPRV” means an insurer licensed under section 8 of the Act as a reinsurer to carry on life or general business or both classes of business and —

(a)	is created for the sole purpose of entering into contracts of reinsurance with one or more ceding insurers; and
(b)	at all times fully funds its obligations under the contracts of reinsurance with the ceding insurer or insurers mentioned in paragraph (a) through insurance securitisation;

[S 845/2018 wef 01/01/2019]

[Deleted by S 137/2020 wef 31/03/2020]

“total risk requirement” has the meaning set out in the First Schedule;

[S 137/2020 wef 31/03/2020]

[Deleted by S 112/2012 wef 28/03/2012]

“trade credit insurer” means an insurer licensed under the Act which has liabilities in respect of trade credit insurance policies;

[S 112/2012 wef 28/03/2012]

[S 233/2013 wef 18/04/2013]

[Deleted by S 233/2013 wef 18/04/2013]

“trade credit insurance policy” means a policy that protects against the risks of loss of an insured arising from —

(a)	the insolvency or default (otherwise than through insolvency) of the debtor of the insured; and
(b)	the debtor failing to pay for goods or services as a result of the insolvency or default; [S 233/2013 wef 18/04/2013]

“unit”, in relation to a collective investment scheme, has the same meaning as in section 2(1) of the Securities and Futures Act (Cap. 289);

“valuation date” means the date on which the assets and liabilities of a licensed insurer are valued.

[S 233/2013 wef 18/04/2013]

(2) In these regulations —

(a)	any reference to a policy of a participating, non-participating or investment-linked fund shall be construed as a reference to a policy in respect of which the participating, non-participating or investment-linked fund, as the case may be, is established or maintained by an insurer under the Act; and
(b)	any reference to a licensed insurer incorporated in Singapore includes a licensed insurer which is a society registered under the Co-operative Societies Act (Cap. 62). [S 233/2013 wef 18/04/2013]

Made this 23rd day of August 2004.

KOH YONG GUAN

Managing Director,
Monetary Authority of Singapore.

[ID 05.1 V.31; AG/LEG/SL/142/2002/1 Vol. 5]

Search within Legislation