MAS Regulatory Notices | Monetary Authority of Singapore

🇸🇬 MAS Regulatory Notice

April 21st 2026

Operational Test Issuance of Cash Management Treasury Bills on 23 April 2026

Sectors:

General

Topics:

General

All Firms

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🇸🇬 MAS Regulatory Notice Significant

July 24th 2025

ID 08/25 Issuance of Consultation Paper and Quantitative Impact Study on Proposed General Insurance Catastrophe Risk Requirement

Informs insurers of the issuance of the Consultation Paper and Quantitative Impact Study on the Proposed General Insurance Catastrophe Risk Requirement

AI Analysis

The Monetary Authority of Singapore (MAS) issued a consultation paper on 24 July 2025 proposing a new **General Insurance Catastrophe Risk Requirement (GI Cat risk charge)** under the enhanced Risk-Based Capital 2 (RBC 2) framework to capture extreme events not covered by existing premium and claim liability risks. This matters for general insurers as it introduces standardized scenarios for Singapore Insurance Fund (SIF) and Offshore Insurance Fund (OIF), plus bespoke scenarios, potentially increasing capital requirements and necessitating model governance and quantitative impact studies (QIS). Compliance professionals must engage promptly as the consultation closed on 5 September 2025, with implementation likely following RBC 2 enhancements.

Key dates

24 July 2025: - Issuance of Consultation Paper (P012-2025) and QIS by MAS
05 September 2025: - Consultation closing date for feedback on proposals and QIS completion
08 December 2025: - Last revision date of related Notice 133 on Valuation and Capital Framework

Suggested considerations

Complete and submit QIS for SIF and OIF general business (exemptions apply for certain reinsurers' OIF).
Provide feedback on consultation questions, including standardized scenarios, "Own Bespoke" requirements, OIF materiality threshold, flood parameters, and governance for models.
Review and prepare internal catastrophe models (vendor/proprietary) meeting proposed governance standards for OIF natural cat risks.
Assess capital impacts under proposed charges and aggregation; update RBC 2 compliance programs accordingly.
Monitor MAS website for final rules post-5 September 2025 (https://www.mas.gov.sg/regulation/circulars/id08_25).

What changed

- Introduction of GI Cat risk charge: Captures natural (e.g., standardized flood for SIF; whole-of-portfolio for OIF) and man-made catastrophe risks (e.g., fire/explosion, economic events, pandemic)...
SIF computation: Prescribed standardized scenarios (flood for natural; fire/explosion, economic event, pandemic for man-made) plus annual "Own Bespoke" scenario for material risks like earthquakes or...
OIF computation: Standardized man-made scenarios plus annual "Own Bespoke" for man-made risks; natural cat on whole-of-portfolio basis using vendor/in-house models with governance requirements;...
Aggregation approach: Specified method for combining GI Cat risk charges across funds.
Accompanying QIS to assess impacts, building on prior studies (2021 preliminary, 2022 stress test, 2024 survey).

Compliance impact

Urgency: High - As of February 2026, consultation is closed, signaling imminent finalization and integration into RBC 2 (last revised Notice 133 on 8 December 2025), requiring proactive capital modeling, scenario testing, and governance updates to avoid supervisory scrutiny. Failure to prepare could elevate capital costs, disrupt RBC compliance, and expose firms to RBC 2 enforcement risks amid MAS's focus on insurer resilience.

References

AI-generated analysis. May contain errors or omissions — verify with the original MAS source before acting. Full disclaimer.

Response Due: 5 September 2025

Sectors:

Insurance & Pensions

Topics:

Prudential / Capital Requirements

Insurance

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