PwC Perspective - What does FAIR mean to your business?
The consultation paper was released on 5 March; 55 pages and 25 questions later, the MAS has signalled its broad support for the 28 recommendations made by the FAIR panel. It contains a detailed explanation of the rationale behind the MAS' support, sets out how the MAS view the changes working and finally the industry is given an indicative time line to comply.
We analysed the consultation paper and have distilled this perspective highlighting some of its key points.
Written comments should be provided no later than the 4th of June 2013.
The proposals, which include discussion of an insurer’s control and governance structure, Asset & Liability Management framework and Enterprise Risk Management process, represent a likely increase in the volume of both qualitative and quantitative information disclosed to the public.These proposals will affect all insurers and reinsurers which are incorporated in Singapore with the exception of captive insurers and marine mutual insurers.
The requirements published are not in the form of detailed rules, but rather principles close to the Own Risk and Solvency Assessment (“ORSA”) Requirements under Solvency 2. The principle-based approach by MAS gives insurers the ability to tailor and enhance their risk management framework in line with the nature and complexity of their business.We have summarised the main points in the pdf.
At the Singapore Actuarial Society Life Insurance Conference on Thursday 8th November, MAS gave a brief update on the response to the consultation period conducted over July and August 2012. We have summarised the main points in our newsletter.
The key messages at a glance are: