Insurance Day
A new paradigm for mutual capital is needed
Tan Suee Chieh, NTUC Enterprise Singapore
Unlike commercial companies, co-operatives cannot easily raise large amounts of fresh capital that qualifies as such in the
eyes of the regulators, because paid-up capital contributed by members may be withdrawn once members decide to disassociate
themselves from the co-operative. Without permanence and loss-absorption ability, such funds cannot be counted as core capital.