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Cigna Europe Insurance Company S.A. – N.V. – Singapore Branch (“Cigna”) (Registration Number: T10FC0145E) is a Singapore branch of Cigna Europe Insurance Company S.A. - N.V. (“Cigna Europe”), a company incorporated in Belgium which holds an A financial rating by A.M. Best Europe.
As a general insurer licensed under the Insurance Act 1966 and regulated by the Monetary Authority of Singapore (“MAS”), we are required by MAS to disclose certain information about our company pursuant to the requirements of MAS Notice 124.
Cigna operates globally to offer a range of health insurance products relevant to individual health insurance and employer sponsored products relating to health and wellbeing. The information contained in this document and on our website (https://www.cigna.com.sg) relates specifically to Singapore business underwritten by CIGNA Europe Insurance Company S.A. – N.V. – Singapore Branch of the insurer.
Cigna sells individual and group expatriate private medical insurance contracts to individuals customers based in Singapore on assignment or living as an expat and to clients as policyholders for the benefit of their employees and employees’ dependents. Cigna provides customers with plans tailored to suit such needs identified at the quote and underwriting process stages. Our customers can choose the benefits that reflect their needs and those of their families. We are also able to provide tailored plans to suit such needs identified by the clients working with us either directly or with brokers who make such determination.
Our strategy and objective is to listen to our clients and offer products which meet their needs and those of their employees and for us to proactively offer new solutions and ease of access to this cover. Cigna is committed to selling ethical, and legally compliant, solutions to our clients.
Cigna has implemented a Corporate Governance Framework which is set up to ensure compliance with local laws and regulations. It takes account of global and local governance initiatives. Its activity is overseen by regulators and auditors. It is a requirement under Singapore regulations that governance protocols are established and routinely monitored. Local management is responsible for the daily compliance and meets regularly to review progress against regulatory standards and best practice guidance published. It is supported in this regard by the parent company which supports and challenges activity to ensure a high degree of management oversight is adopted. This is in line with regulatory objectives set locally for Cigna and its parent company’s regulators. Governance framework and governance controls have been implemented and reviews take place with the regulators on a proactive basis.
Cigna Europe has a Risk Management System which takes into consideration business objectives and risk strategy to provide a framework for identifying, assessing, measuring and reporting on all material risks through quantitative models, qualitative assessments, stress testing exercise and scenario analysis. These complementary risk assessment tools include both bottom up and top down processes to ensure the identification and assessment of all material risk exposures. This includes Insurance, Investment, Credit, Operational and Business risks, which could impact business operations and strategic objectives at either group or local branch level.
The Risk Profile of the organization provides the basis for calculating the Solvency Capital Requirements at both group (“Solvency II”) and local branch level. It is also used to determine which risk exposures should be prioritised for mitigation actions and remediation planning.
The Risk Profile is also leveraged as the baseline for Cigna’s Own Risk and Solvency Assessment (ORSA). This ensures the Board is in a fully informed position regarding current key risk exposures as well as any stressed scenarios (high impact / low likelihood) which could potentially threaten the solvency position of the organisation.
Cigna Europe’s Risk Strategy is directly linked with the corporate strategy and business requirements for a strong financial rating. This has driven the implementation of a Risk Appetite Framework to align risk preference and prioritisation to ensure the business is assuming and constraining risk exposures in an appropriate manner to achieve strategic objectives.
The outcomes from the Risk Management System, including emerging risks or changes in underlying risk trends, are reviewed at local Risk Forums and formalised through the established governance structure at quarterly reporting into the group level Board Risk Committee and Asset Liability Committee.
Cigna Europe’s approach to Risk Management is governed by the principles-based Risk Management Policy. The Risk Management Policy outlines specific risk responsibilities throughout the governance structure and details the overall approach to establishing and embedding risk management throughout the organisation. As a sub-set of policies, Cigna Europe also maintains individual policies per material risk exposure.
Since 1 January 2016, Cigna Europe has been supervised based on the Solvency II framework on a statutory basis. Cigna Europe uses a Partial Internal Model for the calculation of its regulatory Solvency Capital Requirement following approval from its regulator, National Bank of Belgium in 2015. This regulatory approval, which has been maintained on an annual basis, ensures that the approach adopted by Cigna is proportionate to the nature, scale and complexity of the organisation.
Underwriting limits are set dependent upon authority limits set by Cigna Europe and are controlled centrally within the Underwriting Policy. Pricing strategy is set to reflect the underlying medical inflation increases and is reviewed annually.
Claims processes are reviewed regularly by management and subject to local audit scrutiny (ISO9001) to verify quality of the underlying data. A claim triangle analysis is adopted to calculate the Best Estimate Claim Liabilities plus allowance for adverse deviation at minimum 75% sufficiency. The triangle is completed on an accident month basis including all gross paid claims with monthly lag from “accident date” (i.e. date of treatment) to claim payment date. A monthly lag triangle is appropriate for short-tail medical insurance where claims around 99% developed after 12 months.
The asset class of investments is restricted to Sovereign bonds or corporate with government guarantee only, ensuring robust compliance in respect of the Asset-Liability Management policy – investment is only undertaken where a thorough assessment of the nature, scale and complexity of the risks associated with the investments has occurred. Asset Liability Management is undertaken by the Asset Liability Committee (ALCO) which is responsible for the management and monitoring of investments risks and performance within the limits on Cigna Europe Investment Policy.
The Investment Committee has approved unlimited holdings in Singapore Government Bonds and additional Sovereigns restricted to AAA+ rating.
The investment in derivatives is explicitly excluded by the Cigna Europe’s management and ongoing monitoring of this and compliance to the asset class restrictions is reviewed regularly.
Cigna group owes a responsibility to our stakeholders to be transparent and accountable in our Environmental, Social, and Governance (ESG) approach. We do so by disclosing our ESG commitments by using the Global Reporting Initiative (GRI) standards, Task Force on Climate-Related Financial Disclosures (TCFD) framework for our climate-related disclosures, and map our ESG disclosures to the Sustainability Accounting Standards Board (SASB) reporting framework. These disclosures and reports may be assessed here.
In addition to the information we have supplied, we also disclose confidential information in detail to the Regulator to assist with its review and assessment of Cigna.
Furthermore we have additional corporate information about Cigna Corporation and its subsidiaries available from www.Cigna.com.If you have any further questions please contact us at singapore.feedback@cigna.com.
Last reviewed on 10 October 2023
Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © Copyright 2023 Cigna.