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MAS Seeks Public Comments on Proposed Frameworks for Authorised Reinsurers, Approved Insurers and Insurance Brokers 
Posted on Thursday, October 16, 2003 - 10:00 PM

The Monetary Authority of Singapore (MAS) today (16 October 2003) issued a consultation paper on its proposal to implement authorisation and approval frameworks for the cross-border supply of certain types of insurance services to Singapore.

The paper consists of two parts:

• MAS' responses to feedback received in relation to the authorisation framework during the consultation conducted in May 2003 on the Draft Insurance (Amendment) Bill 2003 and
• proposed regulations on the authorisation and approval frameworks.

2. Insurance, and in particular reinsurance business, often involve transnational or cross-border transactions, where the service provider does not have a physical presence in Singapore. Currently, only the cross-border supply of reinsurance to Singapore is allowed under the Insurance Act (Cap. 142).

3. MAS has decided to introduce an authorisation framework for the cross-border supply of reinsurance to Singapore. Under the authorisation framework, overseas reinsurers providing reinsurance to Singapore on a cross-border basis will have to obtain authorisation, whether they are currently providing reinsurance to Singapore or intend to do so in the future.

4. MAS will also introduce an approval framework for the cross-border supply of marine, aviation and transit (MAT) insurance, direct broking of MAT insurance and reinsurance broking to Singapore. Only insurers and insurance brokers licensed under the laws of the countries specified in the Schedules to the regulations may apply for approval. Presently, only the United States of America (USA) is designated in the Schedules as agreed to under Singapore's free trade agreement with USA.

5. Both the authorisation and approval frameworks will come into effect on 1 January 2004. Overseas insurers and insurance brokers who wish to obtain authorisation or approval must comply with basic requirements as spelt out in the regulations, and other applicable criteria. Unlike registered insurers and insurance brokers under the Insurance Act, authorised reinsurers, approved insurers and insurance brokers are subject to limited oversight by the MAS as they do not have a physical presence in Singapore.

6. The consultation paper is posted on the MAS website, www.mas.gov.sg. MAS requests that comments be submitted by 17 Nov 2003. Interested parties may email their comments to authcon@mas.gov.sg.

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For the entire consultation paper, please go to our web site:

http://www.mas.gov.sg-> publications-> MAS Consultation Paper -> Consultation Paper on Regulations for Authorised Reinsurers, and Approved Insurers and Insurance Brokers