MAS consults on proposed changes to group capital framework for Designated Financial Holding Companies (Licensed Insurer)

28 August 2025

On 24 July 2025, the Monetary Authority of Singapore (“MAS”) published its consultation paper on Proposed Changes to the Group Capital Framework for Designated Financial Holding Companies (Licensed Insurer).

MAS is looking to finetune the enhanced risk-based capital framework (“RBC 2”) for insurers in Singapore, which would encompass the group capital framework applicable to Designated Financial Holding Companies (Licensed Insurer) (“DFHC (Licensed Insurer)”). These enhancements take into account global regulatory changes and market developments.

In the consultation paper, MAS proposes, specifically for the group capital framework, to:

• incorporate the risk charging approach for non-insurance entities of a DFHC (Licensed Insurer);
• enhance the capital treatment for joint ventures of a DFHC (Licensed Insurer); and
• introduce a limit to the recognition of capital from non-controlling interests in group financial resources.

The above proposals will be incorporated into Notice FHC-N133 on Valuation and Capital Framework for DFHC (Licensed Insurer) (“Notice”), which took effect on 1 January 2024. The Notice sets out the valuation and capital requirements for all DFHC (Licensed Insurer)s and is based on the RBC 2 consolidation approach.

The consultation closed on 25 August 2025.

Reference materials

The following materials are available from the MAS website www.mas.gov.sg:

• Consultation paper on Proposed Changes to the Group Capital Framework for Designated Financial Holding Companies (Licensed Insurer)
• Circular No ID 07/25 Issuance of Consultation Paper on Proposed Changes to the Group Capital Framework for Designated Financial Holding Companies (Licensed Insurer)