Letter to MAS - Asset Share

Ms. Angelina Fernandez
Monetary Authority of Singapore

I refer to your reply that is published in the Straits Times today (24 August). I need to follow up with a few clarifications:

1. Can you confirm that the insurance company has specified an asset share for each individual participating policy
2. That the total of these individual liabilities equal to the total assets of the participating fund?
3. Is the insurance company required to pay out the full individual liability on the termination of a policy?
4. If the insurance company is allowed to pay less than the asset share, how is the money allocated to the remaining policyholders?

In my earlier letter, I stated that if the total of the individual liability is $13 billion and the total assets is $15 billion, the difference of $2 billion is "orphaned money". I do not get a clear explanation from your latest reply to this point.

Please call me at 81685485 if you wish to seek clarification to my question.

Tan Kin Lian