APRA’s new prudential requirements have formed the basis for corporate governance rules to be introduced in Singapore for the insurance industry later this year, says Deputy Prime Minister Lee Hsien Loong.

The Monetary Authority of Singapore will conclude a complete overhaul of insurance regulations on the general and health insurance sectors by the end of 2005, if not earlier, he said. The MAS wants all insurers to operate using “best practice standards”.

The central bank is in the process of developing risk profiles for each insurer as part of the plan for the risk-based capital adequacy requirements.  

And life insurers may face more “rigorous” corporate governance requirements Mr Hsien Loong said in his address to the International Insurance Society’s 38^th annual seminar.