PGI Singapore Insurance Law & MAS Regulations 2

Question 1

What is the purpose of MAS's 'stress testing' requirements for Singapore insurers?

Accepted Answer

To assess whether insurers can withstand severe but plausible adverse scenarios and maintain solvency

Answer

Stress testing requires insurers to model the impact of severe adverse scenarios (economic shocks, catastrophic events) on their financial position, ensuring they hold sufficient capital buffers to remain solvent under stress.

Question 2

What is Singapore's MAS Technology Risk Management (TRM) Guidelines requirement for insurers?

Accepted Answer

Insurers must implement robust IT governance, cybersecurity measures, and technology risk management to protect operational resilience

Answer

MAS TRM Guidelines require insurers to implement comprehensive technology governance, cybersecurity controls, incident management, and business continuity measures to ensure operational resilience in an increasingly digital environment.

Question 3

What is Singapore's approach under the Insurance Act to 'run-off' insurers?

Accepted Answer

MAS supervises run-off insurers (those no longer writing new business) to ensure they can still meet outstanding obligations to existing policyholders

Answer

MAS continues to supervise insurers in run-off — those that have stopped writing new business but still have outstanding obligations. This ensures remaining policyholders' interests are protected until all obligations are settled.

Question 4

What does Anti-Money Laundering (AML) compliance require of Singapore insurers?

Accepted Answer

Customer due diligence, transaction monitoring, and reporting suspicious transactions to authorities

Answer

AML compliance requires insurers to conduct customer due diligence (know your customer), monitor transactions for suspicious activity, and report suspicious transactions to the Suspicious Transaction Reporting Office (STRO).

Question 5

What is the 'Financial Action Task Force' (FATF) recommendation's significance for Singapore insurers?

Accepted Answer

FATF standards form the basis of Singapore's AML/CFT framework that insurers must comply with

Answer

FATF recommendations form the international standard for anti-money laundering and counter-terrorism financing. Singapore's MAS framework for insurers is largely based on FATF standards, applied domestically through MAS Notices and guidelines.

PGI Insurance Practice Test

PGI Insurance Practice Test

PGI Singapore Insurance Law & MAS Regulations 2