Singapore amends insurance bill post-Allianz deal

Key concern raised by the MCCY is the terms and structure of the deal.

Singapore’s Parliament passed the Insurance (Amendment) Bill yesterday to block the Allianz-Income Insurance deal.

Chee Hong Tat, Minister for Transport and Second Minister for Finance, delivered the Second Reading Speech on the Insurance (Amendment) Bill yesterday, on behalf of Deputy Prime Minister Gan Kim Yong.

The key concern raised by the Ministry of Culture, Community and Youth (MCCY) is not about Allianz's suitability, but about the terms and structure of the deal, particularly in the context of Income's recent corporatisation. 

The proposed amendments will provide a statutory basis for MCCY’s views to be considered in such transactions involving insurers with cooperative links, like Income.

Currently, the IA requires the Monetary Authority of Singapore’s approval for any entity seeking substantial control over an insurer. 

The proposed changes will enable the Minister-in-charge of MAS to take into account MCCY’s views, alongside existing prudential considerations, when reviewing applications involving cooperative-linked insurers. 

This includes insurers that were previously co-ops, like Income, or where a co-op holds a controlling interest.

The bill also allows the Minister-in-charge of MAS to impose conditions or withhold approval in the public interest, with no option for appeal. 

The urgency of the amendments stems from the ongoing deliberation of the proposed transaction by Income’s shareholders. The bill aims to strengthen regulatory oversight in transactions involving cooperative-linked insurers, ensuring the public interest is safeguarded.