MAS Issues Technical Specifications for RBC2 Parallel Run for Insurers
MAS issued technical specifications for RBC 2 parallel run for the year ending December 31, 2018 for insurers in Singapore. The parallel run will allow insurers and MAS to assess the impact of the updated RBC 2 proposals on capital positions and the wider business and strategic implications when RBC 2 becomes effective on January 01, 2020. The results and questionnaire are to be submitted to MAS in the format specified no later than July 02, 2019.
This set of technical specifications sets out the updated policy positions on the RBC 2 framework on matching adjustment, illiquidity premium, and recognition of internal credit rating model or process for unrated corporate bonds. All insurers, with the exception of captives, Lloyd’s insurers and marine mutuals, are required to conduct the parallel run for the year ended 31 December 2018, based on the instructions set out in the technical specifications. Key changes to the previous technical specifications have been highlighted. There remain but a few areas, such as the treatment of infrastructure investments and securitized assets and calibration of the general insurance catastrophe risk requirement, which MAS intends to consult with the industry in due course this year. So far, MAS has conducted three rounds of impact studies on the RBC 2 proposals. The most recent impact study was conducted from September to November 2018. All insurers (with the exception of captives, Lloyd’s insurers and marine mutuals) participated in the 2018 impact study. MAS expects to conduct a final parallel run for the year ended December 31, 2019.
Locally incorporated reinsurers, which are headquartered in Singapore (where MAS is the home supervisor), are to assume that RBC 2 will be applied immediately on its offshore insurance funds as well as its branches for the purpose of the parallel run based on the December 31, 2018 valuation date. Locally incorporated reinsurers that are headquartered overseas (where MAS is not the home supervisor) will continue to be subject to the current simplified solvency requirements, while reinsurance branches will be exempt from solvency requirements for the offshore insurance fund.
Keywords: Asia Pacific, Singapore, Insurance, Risk-Based Capital, Capital Adequacy, RBC 2, Parallel Run, MAS
Previous Article
FED Publishes Financial Stability Report in May 2019Related Articles
|
News
FCA Publishes Its Business Plan for the Coming YearFCA published its Business Plan, which sets out the main areas of focus and priorities for 2019/20.
May 17, 2019
WebPage
Regulatory News
|
|
News
IASB Issues Work Plan and Meeting Updates for May 2019IASB published an updated work plan, along with the update of its meeting in May 2019.
May 17, 2019
WebPage
Regulatory News
|
|
News
CFTC Proposes to Amend Derivatives Clearing Organization RegulationsCFTC proposed amendments to certain regulations applicable to registered derivatives clearing organizations (DCOs) under Part 30 of the CFTC regulations.
May 16, 2019
WebPage
Regulatory News
|
|
News
APRA Licenses Societe Generale As Foreign Deposit-Taking InstitutionAPRA granted Societe Generale a license to operate as a foreign authorized deposit-taking institution under the Banking Act of 1959.
May 16, 2019
WebPage
Regulatory News
|
|
News
EBA Provides Updates on Its Work on Basel III Impact Assessment in EUEBA is working to finalize the impact assessment on implementation of Basel III standards, in response to the EC call for advice, which was received on May 04, 2018.
May 16, 2019
WebPage
Regulatory News
|
|
News
ISDA Publishes Two Consultations on Benchmark FallbacksISDA published two consultations on benchmark fallbacks, the comment periods for which expire on July 12, 2019.
May 16, 2019
WebPage
Regulatory News
|
|
News
Sam Woods of PRA Speaks About Style of Regulation in UK After BrexitSam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of PRA, spoke at the UBS Financial Institutions Conference in Lausanne.
May 16, 2019
WebPage
Regulatory News
|
|
News
FED Publishes Report Summarizing Regulatory and Supervisory ActivitiesFED published a report that summarizes banking conditions and the supervisory and regulatory activities of FED, in conjunction with semiannual testimony before Congress by the Vice Chairman for Supervision.
May 15, 2019
WebPage
Regulatory News
|
|
News
US Agencies Propose to Amend Regulatory Framework for Foreign BanksUS Agencies (OCC, FED, and FDIC) proposed a regulatory framework for foreign banks operating in the U.S. that would more closely match the rules for foreign banks with the risks they pose to the U.S. financial system.
May 15, 2019
WebPage
Regulatory News
|
|
News
ECB Consults on EONIA to €STR Legal Action PlanECB published a consultation, which was launched by the working group on euro risk-free rates, on recommendations to address the legal implications for new and legacy contracts referencing the euro overnight index average (EONIA), as a result of the proposed transition from EONIA to the euro short-term rate (€STR).
May 15, 2019
WebPage
Regulatory News
|
