MAS responds to feedback received on proposed inclusion of additional criteria for Additional Tier 1 and Tier 2 capital instruments for insurers

29 October 2025

On 9 October 2025, the Monetary Authority of Singapore (“MAS”) issued its response to feedback received from its Consultation Paper on Proposed Inclusion of Additional Criteria for Additional Tier 1 and Tier 2 Capital Instruments for Insurers.

MAS launched a consultation on 27 March 2025 relating to the proposed equity counter-cyclical adjustment (“CCA”) and inclusion of additional criteria for additional Tier 1 and Tier 2 capital instruments for insurers, which set out the proposed design and operational aspects of the equity CCA and newly added criteria for Additional Tier 1 (“AT1”) and Tier 2 capital for insurers under the enhanced risk-based capital framework (“RBC 2 framework”).

MAS intends to proceed with the proposal to recognise a capital instrument issued by an insurer as AT1 or Tier 2 capital under the RBC 2 framework if the capital instrument is sold only to a person that is not a retail investor in Singapore, with effect from 1 January 2026.

After considering feedback from the industry, MAS has decided not to include point of non-viability features in the AT1 and Tier 2 capital instruments within the RBC 2 framework, at this juncture.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg:

• Response to Consultation Paper on Proposed Inclusion of Additional Criteria for Additional Tier 1 and Tier 2 Capital Instruments for Insurers
• ID 12/25 Response to Consultation Paper on Proposed Inclusion of Additional Criteria for Additional Tier 1 and Tier 2 Capital Instruments for Insurers