The Monetary Authority of Singapore (MAS), in a speech to the Life Insurance Association of Singapore, set out supervisory priorities for insurers focused on fair dealing and customer outcomes, risk-appropriate capital and risk management, operational resilience, and the disciplined adoption of artificial intelligence (AI). The remarks highlighted the revised Notice 133 on the Valuation and Capital Framework for Insurers, which takes effect from 31 March 2026. On customer outcomes, MAS pointed to persistent issues including delayed claims updates, unclear explanation of terms and conditions, and poorly communicated application rejections. For investment-linked policies (ILPs), MAS said it will classify ILPs as complex products, signalling that advice is recommended before purchase, and will issue a response paper shortly following its consultation on a product highlights sheet to clarify key risks, features and fees. MAS also described a thematic review of complaints handling across selected banks and insurers and said it intends to publish an information paper later in 2026 to share observed good practices. On prudential settings, the revised Notice 133 includes a new capital treatment for qualifying infrastructure investments under the enhanced risk-based capital framework for insurers (RBC 2) and “Project Verdi” to support sustainable infrastructure investments, refined structured product treatment allowing external credit ratings for securitised asset tranches when calculating capital charges, and the introduction of equity counter-cyclical adjustments to reduce procyclical behaviour during sharp market swings. MAS said it is tracking increased insurer allocations to private assets, including through asset-intensive reinsurance (AIR), and targets a consultation on further guidance later in 2026. Separately, MAS noted it is consulting on new Guidelines on Third Party Risk Management and Operational Risk Management, with the consultation closing on 20 April 2026, and is developing Guidelines in AI Risk Management alongside industry work under Project MindForge.
Monetary Authority of Singapore 2026-03-30
Monetary Authority of Singapore outlines insurer priorities with revised Notice 133 capital rules effective 31 March and planned guidance on AIR, third-party risk and AI
The Monetary Authority of Singapore outlined supervisory priorities for insurers around fair dealing and customer outcomes, risk-appropriate capital and risk management, operational resilience, and disciplined adoption of artificial intelligence. Key measures include classifying investment-linked policies as complex products, revising Notice 133 under the risk-based capital framework to adjust capital treatment for infrastructure, structured products and equities, and enhancing oversight of private asset exposures. MAS is also consulting on new Guidelines on Third Party Risk Management and Operational Risk Management and developing AI Risk Management Guidelines.