Reinsurers’ share of policy liabilities
16A.—(1)  A licensed insurer must recognise, as assets of an insurance fund established and maintained under section 17 of the Act for the general business of the insurer, the reinsurers’ share of premium liabilities, and the reinsurers’ share of claim liabilities, in respect of the policies of the insurance fund.
(2)  A licensed insurer must calculate the reinsurers’ share of premium liabilities mentioned in paragraph (1) as the amount of premium liabilities (gross of reinsurance) less the amount of premium liabilities (net of reinsurance).
(3)  A licensed insurer must determine the amount of premium liabilities (gross of reinsurance) and the amount of premium liabilities (net of reinsurance) mentioned in paragraph (2) in the manner provided in regulations 19A(2)(a) and 19(1)(a), respectively.
(4)  A licensed insurer must calculate the reinsurers’ share of claim liabilities mentioned in paragraph (1) as the amount of claim liabilities (gross of reinsurance) less the amount of claim liabilities (net of reinsurance).
(5)  A licensed insurer must determine the amount of claim liabilities (gross of reinsurance) and the amount of claim liabilities (net of reinsurance) mentioned in paragraph (4) in the manner provided in regulations 19A(2)(b) and 19(1)(b), respectively.
(6)  A licensed insurer must make separate calculations of the reinsurers’ share of premium liabilities and the reinsurers’ share of claim liabilities for each line of business that is carried on by the insurer and that is described in the following Form (whichever is applicable):
(a)in the case of a licensed insurer who is not a captive insurer, an SPRV or a marine mutual insurer — Form G1 in Appendix B to MAS Notice 129;
(b)in the case of a captive insurer — Form G1 in Appendix B to MAS Notice 130;
(c)in the case of an SPRV — Form G1 in Appendix B to MAS Notice 131;
(d)in the case of a marine mutual insurer — Form G1 in Appendix B to MAS Notice 212.
(7)  A licensed insurer carrying on life business must recognise, as an asset of a participating fund, non-participating fund or investment-linked fund, the reinsurers’ share of policy liabilities in respect of the following, respectively:
(a)the policies of the participating fund;
(b)the policies of the non-participating fund;
(c)the policies of the investment-linked fund.
(8)  A licensed insurer carrying on life business must calculate the reinsurers’ share of policy liabilities in respect of the policies of a participating fund mentioned in paragraph (7)(a) as the value derived from the formula A − B, where —
(a)A is the sum of —
(i)the liability (gross of reinsurance) in respect of each non-participating policy of the participating fund, determined in the manner provided in regulation 20A(3); and
(ii)the liability (gross of reinsurance) in respect of each participating policy of the participating fund, which is the value derived from the formula (W + X) − Y, where —
(A)W is the value of the expected future payments arising from the guaranteed benefits of the policy (including any expense that the insurer expects to incur in administering the policy and settling any claim against the policy);
(B)X is any provision for any adverse deviation from the expected experience; and
(C)Y is the value of future receipts arising from the policy; and
(b)B is the minimum condition liability of the participating fund.
(9)  A licensed insurer carrying on life business must calculate the reinsurers’ share of policy liabilities in respect of the policies of a non-participating fund mentioned in paragraph (7)(b), which is the value determined in the manner provided in regulation 20A(8) less the value determined in the manner provided in regulation 20(5).
(10)  A licensed insurer carrying on life business must calculate the reinsurers’ share of policy liabilities in respect of the policies of an investment-linked fund mentioned in paragraph (7)(c), which is the value determined in the manner provided in regulation 20A(8) less the value determined in the manner provided in regulation 20(5).
[S 845/2018 wef 01/01/2019]