Singapore regulator to amend ERM rules for insurers

It wants to boost liquidity risk management and stress testing.

The Monetary Authority of Singapore (MAS) is looking to revise its enterprise risk management (ERM), investment, and public disclosure requirements for insurers.

The regulator seeks to align its rules with the relevant updated Insurance Core Principles adopted by the International Association of Insurance Supervisors in November 2019.

The proposed requirements will strengthen insurers’ risk management practices, including the enhancement of liquidity risk management and stress testing processes, and to help prevent sector vulnerabilities and exposures from snowballing into systemic risks.

MAS is also proposing a separate set of amendments to MAS Notice 125 to provide more clarity on expectations regarding oversight and investment activities of insurers.

Moreover, it wants to boost public disclosure requirements in MAS Notice 124 in the areas of investment risk, company profile information, technical provisions, and non-Generally Accepted Accounting Principles financial measures.