Labeling the insurance float as merely contingent liability misses the alpha opportunity it offers to those who know how to exploit it.
It is a race for efficiency, where insurers managing their reserves disciplinedly gain a competitive advantage, turning a cost into investment capital.
The MAS in Singapore recognizes that this contingent liability can become a productive asset if well managed, as evidenced by the stable returns of Great Eastern Holdings.
Ignoring this potential is leaving money on the table in front of more agile competitors.