RBC2: Capital Framework Implications for Singapore Insurers

The revised Risk-Based Capital framework introduces more granular treatment of insurance risk, market risk and credit risk, and tighter rules on admissible capital quality. General and life insurers face materially different impacts depending on their asset mix, product profile and reinsurance arrangements. We outline the key technical changes, where the final framework diverged from earlier consultation papers, and the practical steps insurers should take to assess their position and engage with their boards.