PGI Singapore Insurance Law & MAS Regulations

Question 1

Under Singapore's Insurance Act, what is the difference between a 'direct insurer' and a 'reinsurer'?

Accepted Answer

A direct insurer provides coverage to policyholders; a reinsurer provides coverage to other insurers, and both require separate MAS licences

Answer

There is no regulatory difference between them

Answer

Only direct insurers need MAS licences; reinsurers are unregulated

Answer

Reinsurers can also sell directly to the public

Question 2

What is the MAS requirement regarding the appointment of a 'Chief Risk Officer' (CRO) for larger insurers?

Accepted Answer

Larger insurers (above specified thresholds) must appoint a CRO responsible for enterprise-wide risk management, approved by MAS

Answer

There is no such requirement in Singapore

Answer

CROs must be external consultants

Answer

The CRO role can be combined with the CFO role in all cases

Question 3

What is 'ORSA' (Own Risk and Solvency Assessment) under Singapore's RBC 2 framework?

Accepted Answer

An insurer's internal process to self-assess its risk profile, capital needs, and solvency position prospectively

Answer

A standard premium calculation method

Answer

A MAS annual examination of insurers

Answer

A Singapore-specific reinsurance arrangement

Question 4

Under MAS corporate governance guidelines for insurers, what is the required minimum proportion of independent directors?

Accepted Answer

At least one-third of the board must be independent directors

Answer

No minimum requirement — it is optional

Answer

All directors must be independent

Answer

Only the chairman must be independent

Question 5

What is 'ring-fencing' of insurance funds under Singapore law?

Accepted Answer

The legal requirement that insurance fund assets be kept separate from shareholders' assets and used only for policyholder obligations

Answer

A physical security measure for insurer offices

Answer

A restriction on investments in foreign markets

Answer

A requirement to keep claims reserves in cash only

Question 6

What does Singapore's Terrorism (Suppression of Financing) Act require of insurers?

Accepted Answer

Insurers must screen customers, freeze assets of designated entities, and report links to terrorist financing to authorities

Answer

Insurers must purchase terrorism reinsurance

Answer

Terrorism is excluded from all Singapore insurance policies

Answer

Insurers must obtain government approval before paying terrorism claims