These guidelines apply to all direct life insurers intending to develop and use internal models for insurance products with investment guarantees which have non-linear payouts (e.g. variable annuity policies).

They set out:

• General application process for the exemption from relevant section in the Insurance (Valuation & Capital) Regulations so that the insurer may use internal models.
• Conditions that an insurer should observe for MAS' assessment of internal model.
• Information expected for application.
• Minimum standards that an insurer is expected to observe for the use of internal model.