Regulation 19A

premium liabilities (gross of reinsurance), which is an amount not less than the higher of the following:

the unearned premium reserves (gross of reinsurance) of the fund, which is the aggregate of unearned premium reserves (gross of reinsurance) for each policy of the fund determined in the manner provided in paragraph (7);

the unexpired risk reserves (gross of reinsurance), which is the sum of the value of the expected future payments arising from future events insured under policies in force as at the valuation date (including any expense expected to be incurred in administering the policies and settling claims against those policies) and —

in the case of a captive insurer, an SPRV or a marine mutual insurer, any provision for any adverse deviation from the expected experience; or (B)in any other case, any provision for any adverse deviation from the expected experience, calculated based on the 75 per cent level of sufficiency; and (b)claim liabilities (gross of reinsurance), which is an amount not less than the value derived from the formula A + B, where —

A is the value of the expected future payments in relation to claims incurred prior to the valuation date (including any expense expected to be incurred in settling the claims) and that fall due for payment after the valuation date, whether or not the claims have been reported to the insurer; and

B is —

in the case of a captive insurer, an SPRV or a marine mutual insurer, any provision for any adverse deviation from the expected experience; or

in any other case, any provision for any adverse deviation from the expected experience, calculated based on the 75 per cent level of sufficiency.

in the case of a licensed insurer who is not a captive insurer, an SPRV or a marine mutual insurer — Form G1 in Appendix B to MAS Notice 129;

in the case of a captive insurer — Form G1 in Appendix B to MAS Notice 130; (c)in the case of an SPRV — Form G1 in Appendix B to MAS Notice 131;

in the case of a marine mutual insurer — Form G1 in Appendix B to MAS Notice 212.

the premium liabilities (gross of reinsurance) must be an amount not less than the unexpired risk reserves (gross of reinsurance);

the unexpired risk reserves (gross of reinsurance) is the value derived from the formula A + B, after allowing for the effect of diversification (if any) at the level of the insurance fund mentioned in paragraph (1), where —

A is the value of the expected future payments arising from future events insured under policies in force as at the valuation date (including any expense expected to be incurred in administering the policies and settling claims against the policies); and (ii)B is —

in the case of a captive insurer, an SPRV or a marine mutual insurer, any provision for any adverse deviation from the expected experience; or

in any other case, any provision for any adverse deviation from the expected experience, calculated based on the 75 per cent level of sufficiency;

the claim liabilities (gross of reinsurance) must be an amount not less than the value derived from the formula A + B, after allowing for the effect of diversification (if any) at the level of the insurance fund mentioned in paragraph (1), where —

A is the value of the expected future payments in relation to claims incurred prior to the valuation date (including any expense expected to be incurred in settling the claims) and that fall due for payment after the valuation date, whether or not the claims have been reported to the insurer; and

B is —

in the case of a captive insurer, an SPRV or a marine mutual insurer, any provision for any adverse deviation from the expected experience; or

in any other case, any provision for any adverse deviation from the expected experience, calculated based on the 75 per cent level of sufficiency.

in the case of a direct insurer that underwrites risks relating to cargo policies —

an amount not less than 25% of the gross premiums written in the accounting period for those policies; or (ii)an amount calculated on a basis not less accurate than the 1/24th method;

in the case of an insurer that carries on the business of reinsurance of liabilities under insurance policies —

an amount not less than —

25% of the gross premiums written in the accounting period in the case of marine and aviation policies; or (B)40% of the gross premiums written in the accounting period in other cases; or

an amount calculated on a basis not less accurate than the 1/24th method; or

in any other case, subject to paragraph (8), an amount calculated on a basis not less accurate than the 1/24th method.

where the 1/24th method or a more accurate method is used, using an amount of gross premiums written which is reduced by the actual commissions payable; or

in any other case, using an amount of gross premiums written without any deduction for commissions payable from the gross premiums.