Insurance laws Singapore
Singapore's insurance industry is governed by the Insurance Act (Cap. 142), which provides a comprehensive legal framework for the regulation and supervision of insurance business in the country. The Monetary Authority of Singapore (MAS) serves as the central regulatory authority overseeing the insurance sector.
📜 Key Legislation: Insurance Act (Cap. 142)
The Insurance Act (Cap. 142) is the principal legislation regulating insurance business in Singapore Key provisions include:
Licensing of Insurers:No person may carry on insurance business in Singapore unless licensed by the MAS The Act outlines the requirements and procedures for obtaining and maintaining a license
Insurance Funds and Capital Adequacy:Insurers are required to establish insurance funds and maintain solvency margins to ensure they can meet their liabilities The Act specifies the capital adequacy requirements and the allocation of surplus
Investment Regulations: The Act reulats the form, investment, and custody of assets held by insurers to ensure they are properly managed and protected
Control of Premiums and Policy Forms: The Act controls the regulation of premiums under life policies and long-term accident and health policies It also governs the form and content of proposals, policies, and brochures
Takeovers and Shareholdings:The Act provides the MAS with powers to control takeovers and substantial shareholdings in licensed insurers incorporated in Singapore It also olines the procedures for objections to existing control and the powers of the MAS to make directions
Insurance Intermediaries:The Act regulates insurance agents and brokers, specifying requirements for registration, conduct, and obligations to provide information to the MAS
Reinsurers:the Act provides for the authorization of reinsurers and outlines their obligations, including the maintenance of assets and the provision of information to the MAS
Foreign Insurer Schemes:The Act allows for the establishment of foreign insurer schemes and outlines the requirements and procedures for carrying on insurance business under such schemes
Returns, Inspections, and Investigations:The Act provides for the submission of annual accounts and actuarial investigations, as well as the powers of the MAS to conduct inspections and investigations into the affairs of insurers
Winding Up and Transfers of Business:The Act outlines the procedures for the winding up of insurers and the transfer of insurance business, including the priority of claims of policy owners and specified liabilities
Assistance to Foreign Regulatory Authorities:The Act allows the MAS to provide assistance to foreign regulatory authorities in the enforcement of insurance laws
🏢 Regulatory Authority: Monetary Authority of Singapore (MAS)
The Monetary Authority of Singapore (MAS) is the central bank and integrated financial regulator in Singapor. MAS is responsible for the regulation and supervision of the insurance industry, ensuring that insurers operate in a sound and effective manne. MAS's role include:
Licensing Granting licenses to insurers and insurance intermediarie.
Supervision Monitoring the financial health and compliance of insurer.
Policy Development Developing and implementing policies to promote a stable and competitive insurance marke.
Consumer Protection Ensuring that the interests of policyholders are protecte.
Enforcement Taking enforcement actions against entities that breach regulatory requirement.MAS also provides guidance and resources to the insurance industry and the public to promote understanding and compliance with insurance regulation.
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