PwC's Managing upstream risk: Regulatory reform review - An asian perspective November 2013 | Page 29

Singapore

On 6 November 2013 the Managing Director
of MAS, Ravi Menon, delivered a keynote
speech at the 12th Singapore International
Reinsurance Conference on the global insurance
marketplace. The following points summarises
the topics touched on in the speech:
• Asia’s Changing Risk Landscape
• The Journey to a Regional Underwriting Hub
• Towards Becoming a Global Marketplace
• Increase supply-side capacity
• Promote Asian Demand
• Develop the Marketplace
• Foster a Conducive Business Environment

After consideration of the feedback received,
MAS announced on 18 November 2013 the
authority will defer the implementation of
MASNET submission to end August 2014 (i.e.
starting from the Q2 2014 returns). In the
interim, insurers may continue to submit the
returns in EXCEL format via email attachments
subject to the security requirements specified
in the Notice. In addition, some minor updates
have been made to the PDF forms and XML
specifications.

Under MAS Notice 122 issued on 29 November
2012 to collect granular data on insurers’ asset
and liability exposures, MAS gave insurers a
temporary concession to submit the returns in
EXCEL format via email attachments. At the
same time, MAS indicated that eventually, the
submission of the returns would be through
MASNET only.

On 14 August 2013, MAS conducted an
industry briefing on XML specification relating
to MASNET submission of returns under the
Notice. Insurers were briefed on an automated
method of filling the PDF forms to be submitted
through MASNET. MAS also subsequently
sought insurers’ feedback on commencing
MASNET submission of the returns starting
from the Q4 2013 returns.

5. Insurance
Update

The European Parliament and the Council
in trilogue negotiations with the EC on 13
November 2013 reached a provisional political
agreement on the contents of the Omnibus II
Directive concluding a lengthy and difficult
negotiation process. Omnibus II initially aimed
to adapt the Solvency II framework to bring
it in line with the EU’s Lisbon Treaty and the
EU’s new supervisory structure. Insurers will
have very little time between the finalisation
of the delegated acts and technical standards,
which provide important details on technical
matters under Solvency II, and the proposed
application date of 1 January 2016. Agreed new
rules contain so-called “long term guarantees”
measures which adjust current Solvency II
framework to cope with “artificial” volatility and
low interest rate environment, and allow for the
smooth transition from the Solvency I regime to
the Solvency II.

Banking | Regulatory Reform Review

29