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Singapore's D-SII Rollout Improves Insurance Sector Resilience

SINGAPORE (S&P Global Ratings) Sept. 25, 2023--Singapore's recently introduced framework for domestic systematically important insurers (D-SIIs) is a positive move for the country's insurance industry. The move will fortify the industry's resilience and market confidence, in our view.

The Monetary Authority of Singapore (MAS) is the first regulator in Asia to introduce a D-SII framework that includes recovery and resolution planning.

"While the strengthened regulatory oversight will raise operational costs for D-SIIs, we think the overall benefits to the insurance sector outweigh the costs," said S&P Global Ratings credit analyst Eileen Tay. "Given an increasingly complex risk landscape, a higher bar on supervision encourages D-SIIs to maintain high standards of governance and risk management."

The D-SIIs designated are:

  • AIA Singapore Pte. Ltd. (AA-/Stable/--);
  • Income Insurance Ltd. (AA-/Stable/--);
  • Prudential Assurance Co. Singapore (Pte.) Ltd. (AA- Stable/--); and
  • The Great Eastern Life Assurance Co. Ltd. (AA-/ Stable/--).

These four companies together hold around 70% of the assets within Singapore life insurance funds.

Designated D-SIIs will be subject to higher capital requirements with a 25% capital add-on. This does not have any immediate financial impact or ratings implications, because it replaces the 25% "high impact surcharge" applicable to the four insurers under MAS' existing framework.

Overall, the requirements for D-SIIs elevate MAS' existing framework for assessing the impact and risks of financial institutions. It also provides more transparency. For example, the amount of capital surcharge for the four major insurers was not publicly available before.

This report does not constitute a rating action.

The report is available to RatingsDirect subscribers at If you are not a RatingsDirect subscriber, you may purchase a copy of the report by sending an e-mail to Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box at

Primary Credit Analyst:Eileen Tay, Singapore +65 65976153;
Secondary Contacts:Eunice Tan, Singapore +65-6530-6418;
Philip P Chung, CFA, Singapore + 65 6239 6343;
Trupti U Kulkarni, Singapore + 65 6216 1090;
Billy Teh, Singapore + 65 6216 1069;

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