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

Plans to amend risk-based capital framework are part of regulator's move to make insurance sector more resilient

"As an industry, we are also very objective in making sure that we are not asking for things that are not reasonable . . . We are also hoping that the framework is good because it is important for the industry to be well-capitalised." - Khoo Kah Siang, LIA's president
"The risk requirements under (the proposed changes) are designed to be more risk-sensitive, comprehensive and calibrated to a higher target confidence level." - MAS's Ong Chong Tee


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