Isn't it unwise to consider insurance float as a perpetual and low-cost investment fund, when it is actually a conditional obligation? Ignoring the capitalization requirements of MAS in Singapore means losing the race for regulatory advantage. Reserves for future claims are not optional; they are key to maintaining credibility and avoiding penalties. A company that does not manage its reserves aggressively will quickly fall behind others. For example, if an insurance company does not allocate enough capital to cover catastrophe risks, it risks being subjected to investment restrictions or substantial fines, limiting its ability to generate alpha.