NTUC Income to convert legal structure; Syarikat Takaful names CEO

Policy and regulation

The Insurance Regulatory and Development Authority of India issued guidelines to regulate and develop surety insurance business in the country.

Under the guidelines, general insurers could start a surety insurance business provided they maintain a solvency margin of not below 1.25x of the control level of solvency specified by the regulator. The regulator also mandates that general insurers should have a board-approved underwriting philosophy for surety insurance business, risk management and required infrastructure for writing surety insurance, among other requirements.

Insurers can only issue surety insurance contracts to specific infrastructure projects of government or private entities. The issuance of surety insurance contracts on behalf of promoters or their subsidiaries, groups, associates and related parties is not allowed.

Life and health

Exide Industries Ltd. closed the sale of its entire stake in Exide Life Insurance Co. Ltd. to HDFC Life Insurance Co. Ltd. on Jan. 1.

Multiline

NTUC Income Insurance Co-operative Ltd. plans to convert its legal structure to a company governed by Singapore's Companies Act from a co-operative in an effort to strengthen its competitive position.

Under the plan, NTUC Income will transfer its existing insurance business and assets to the new company, Income Insurance Ltd., after which the co-op will be liquidated. The move will not affect the existing coverage, benefits and terms of current policyholders. The proposed corporatization exercise is expected to be completed in the second half of 2022, subject to regulatory approvals and other customary closing conditions.

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Nor Azman Zainal succeeded Mohamed Hassan Kamil as group CEO of Syarikat Takaful Malaysia Keluarga Bhd.

Reinsurance

Insurance Australia Group Ltd., or IAG, said the cost of its annual catastrophe reinsurance program increased by "mid-single digits" in 2022. The Australian insurer had placed its catastrophe program for the 2022 calendar year, which, like the 2021 program, will provide up to A$10 billion of cover. IAG will retain the first A$250 million of each loss, as previously.

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MS Amlin Underwriting Ltd.'s Singapore operation, Ms Amlin Asia Pacific Pte. Ltd., launched Phoenix 2 Re Pte. Ltd., a special purpose reinsurance vehicle with US$37.5 million of capacity.

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