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Insurance Products Eligible for PPF Scheme Coverage: A Pragmatic Approach

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In a bid to streamline the insurance landscape, the Monetary Authority of Singapore (MAS) has proposed enhancements to the Productivity and Innovation Credit (PIC) scheme. The new measures aim to provide greater clarity on what types of products should be covered under the scheme.

Sole Proprietors Included in PPF Scheme Coverage

The MAS has clarified that sole proprietors, considered natural persons, are eligible for coverage under the PPF scheme. This decision ensures that these entrepreneurs can benefit from the scheme’s protection against unforeseen events.

Pragmatic Approach to Refund Premiums and Payment Claims

To facilitate payments in case of insurer liquidation, the MAS has proposed a more pragmatic approach for calculating refund premiums and payment claims for certain categories of losses.

Tighter Governance for Policy and Claims Tracking

The MAS has also suggested measures for PPF Scheme members to ensure accurate tracking of policy and claims. This includes:

Annual internal audits or periodic external audits on systems and processes related to the tracking of policy and claims

Implications for Insurers

The proposed enhancements will require PPF Scheme members to:

Update their policy administration systems
Issue endorsements to split out risk components
Enhance their internal controls and governance processes

What’s Next?

As regulators continue to fine-tune the insurance landscape, financial institutions and consumers should stay informed about upcoming consultations and changes. The MAS is set to initiate a holistic consultation on the Complex Products Regime in the first half of 2024, which will aim to balance retail investor protection with increased accessibility to more investment products.

Stay Ahead of the Regulatory Curve

To ensure compliance and adaptability, financial institutions should be prepared for upcoming consultations and changes. PwC’s regulatory experts are available to provide guidance on navigating these developments and ensuring a seamless transition.

Contact: Kwok Wui San Partner, Regulatory Risk and Compliance Leader PwC Singapore wui.san.kwok@pwc.com +65 8218 8727