MAS: Proposed changes won't hamper well-managed insurers

Singapore

THE proposed changes to the risk-based capital framework will be more risk-sensitive, robust and fit-for-purpose, but should not hamper well-managed insurance businesses unduly.

The changes, also known as RBC 2, seek to reflect the relevant risks insurers face and are part of the Monetary Authority of Singapore's (MAS) move to make the insurance sector more resilient.

Ong Chong Tee, deputy managing director of financial supervision at MAS, said the regulator will implement RBC 2 only after it has conducted "a thorough calibration and assessment".

He noted that some of the insurers are "naturally anxious" about whether they have to maintain the same high buf…