The assertion that insurance float is a pure competitive advantage, without being a contingent liability, ignores the reality of its nature.
If we had not already invested so much attention in this romantic idea, would we really be ready to reclassify this concept as free capital, knowing that it represents premiums collected before claims are paid?
By definition, it is a potential obligation, and if premiums do not cover claims, this "capital" becomes a burden, not a leverage; prudence in Singapore proves this.
MAS regulators ensure that insurers maintain adequate reserves, a necessity for survival and compliance, not a luxury or an alpha strategy.