of Monetary Authority of Singapore (MAS) is streamlining the product approval process for life insurance companies while maintaining strong consumer protections.
The amendments to MAS Notice 302 on Product Development and Pricing and MAS Notice 321 on Direct Purchase Insurance Products (effective November 21, 2024) introduce a tiered notification system based on the novelty of product features.
Pre-approval from MAS will now only be required for products with features that are completely new to Singapore’s life insurance industry.
Such approval requests must be submitted at least one month prior to the intended product launch date.
This allows MAS to thoroughly evaluate these new products for appropriate pricing, capitalization, and consumer disclosure prior to launch.
This is critical as existing regulations may not adequately accommodate the features of entirely new products and the long-term nature of life insurance contracts requires careful scrutiny before launch.
For product features that are already offered by other insurers in Singapore but are new to a particular insurer, pre-approval will be replaced with a notification requirement of at least one month prior to launch.
This notification gives MAS lead time to review the material and proactively work with insurers to ensure compliance with existing regulations.
This change recognizes that existing regulatory frameworks need to adequately address these product features and hold insurers accountable for ensuring compliance.
For products that are not new to the insurer, notification to MAS is still required, but within seven business days of product launch.
Similar amendments also apply to direct purchase insurance (DPI) products under MAS Notice 321.
MAS must be notified of new or repriced DPI products with features new to the insurer at least one month prior to launch.
All other DPI product launches must be notified to MAS within 7 business days.
These amendments aim to foster innovation within the life insurance sector while maintaining strong consumer protections.
Updated notices are available on MAS. Website.
