The Monetary Authority of Singapore is consulting over its move to ‘finetune’ the city state’s enhanced risk-based capital framework (RBC 2) for insurers that will see a differentiated capital treatment for infrastructure investments, and infrastructure structured products.
The MAS move follows a similar approach by the International Association of Insurance Supervisors (IAIS) for the insurance capital standard (ICS). The ICS will be formally adopted as a group-wide capital requirement for internationally active insurance groups after the five-year monitoring period ends on 31 Dec 2024.
“Currently there is no differentiated treatment for infrastructure investments under the RBC 2 framework for insurers in Singapore. In line with international developments, MAS is now consulting on a risk appropriate and evidence-based capital treatment for infrastructure investments entered into by insurers.
MAS is also consulting on the associated infrastructure definitions and qualifying criteria that infrastructure investments must meet to be eligible for the differentiated treatment,” MAS said in a press release announcing the consultation.
The consultation paper outlines the key proposals of both reviews, which will be incorporated into Notice 133 on Valuation and Capital Framework for Insurers (MAS Notice 133). The consultation is open to submissions until 22 November.
