Should the proposed deal be approved, Chee replied that the terms and conditions of existing insurance contracts would not change. He also added that MAS has regulatory requirements and guidance in place for insurers to maintain sufficient capital reserves, implement robust governance and risk management frameworks, and treat their customers fairly.
Several questions were asked about the Income Insurance-Allianz transaction in Singapore’s Parliament on Aug 6. Chee Hong Tat, Second Finance Minister and Monetary Authority of Singapore (MAS) board member, says: “When MAS assesses the application for a change in substantial shareholder in an insurer, we will consider a range of criteria, in particular, the applicant’s track record, financial soundness, reputation, as well as fitness and propriety. The insurer must also have effective risk management systems and controls so that it can continue to meet its obligations to policyholders for the long-term.”
Allianz Insurance Singapore is ranked 14th in general insurance with a market share of 2% based on written premiums. “There is no significant overlap between Income and Allianz’s overall insurance business in Singapore, and hence, there is no concern about the adverse impact of the proposed deal on competition in the sector,” Chee adds.
