MAS consults on proposed general insurance catastrophe risk requirement

28 August 2025

On 24 July 2025, the Monetary Authority of Singapore (“MAS”) published its consultation paper on Proposed General Insurance Catastrophe Risk Requirement.

MAS has been working with insurers writing general business on the proposed general insurance catastrophe risk requirement (“GI Cat risk charge”) to be incorporated under the enhanced risk-based capital framework (“RBC 2”). The GI Cat risk charge captures the risk associated with extreme or irregular events whose effects are not sufficiently captured in requirements for premium liability risk and claim liability risk. In April 2021, MAS issued a preliminary impact study and survey to all insurers writing general business. Since then, further work has been done culminating in a standardised flood scenario calibrated to a one-in-200-year event over a one-year period, for the Singapore Insurance Fund (“SIF”). The standardised flood scenario was included as part of the 2022 industry-wide stress testing exercise that significant insurers participated in.In October 2024, MAS sought further input from insurers on a set of proposed standardised scenarios and an “Own Bespoke” scenario via a survey.

The consultation paper, whose publication follows MAS’ review of the industry’s feedback and further calibration, sets out:

  • the computation approach for the GI Cat risk charges for the SIF and the Offshore Insurance Fund (“OIF”); and
  • the proposed aggregation approach to be adopted when aggregating GI Cat risk charges.

The consultation paper also provides information on the quantitative impact study (“QIS”) to be conducted.

Insurers with general insurance business (except captives, Lloyd’s insurers, marine mutual insurers, and special purpose reinsurance vehicles) are required to complete the QIS and are strongly encouraged to provide feedback on the consultation questions for both its SIF and OIF in respect of general business. Foreign-headquartered licensed reinsurers that operate as branches or subsidiaries continue to be exempt from applying RBC 2 on its OIF business. These reinsurers do not need to complete the parts of the QIS and consultation questions relating to the OIF.

The consultation closes on 5 September 2025.

Reference materials

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