The much anticipated second consultation on the proposed changes to the existing risk-based capital (RBC) framework, commonly dubbed as RBC 2, was announced by the Monetary Authority of Singapore (MAS) at the end of March 2014. This consultation paper sets out more specific proposals following the first consultation in June 2012 and takes into account the feedback received from the industry to that consultation as well as introducing some new proposals. As part of this announcement, the MAS has also released detailed technical specifications based on which insurers are expected to conduct the first quantitative impact study (QIS 1) to assess the impact of the proposals in the consultation paper.

The deadline for providing feedback and submitting the results for the QIS1 is 30 June 2014. The MAS intends to finalise the proposed changes to the RBC framework by the end of 2014 and implement the RBC 2 requirements (with the exception of certain general insurance risk requirements) from 1 January 2017. In the meantime, the MAS expects a third round of consultation on the RBC 2 proposals and a second quantitative impact study, also in 2014.