IA launches public consultation on new capital regime

The Insurance Authority (IA) of Hong Kong initiated a public consultation focusing on four draft rules integral to the implementation of the new capital regime in the insurance sector.

The areas covered include the criteria for exempting the appointment of a general insurance actuary, stipulations for maintaining assets in Hong Kong for general business, and specific valuation and capital requirements for marine insurers, captive insurers, and Lloyd's.

The draft rules under this consultation are as follows:

• Draft Insurance (Exemption to Appointment of Actuary) Rules (Cap. 41Q)
• Draft Insurance (Maintenance of Assets in Hong Kong) Rules (Cap. 41T)
• Draft Insurance (Marine Insurers and Captive Insurers) Rules (Cap. 41U)
• Draft Insurance (Lloyd’s) Rules (Cap. 41V)

The consultation paper is accessible on the IA's website, and the authority is inviting feedback from the public.

This consultation follows a previous one launched in December, which focused on two draft rules: the draft Insurance (Valuation and Capital) Rules (Cap. 41R) and the draft Insurance (Submission of Statements, Reports and Information) Rules (Cap. 41S). The earlier consultation is set to conclude on Jan. 16.

The IA plans to review the feedback from both rounds of consultations and will publish the conclusions in due course. This step is part of the authority's ongoing efforts to refine and enhance the regulatory framework governing the insurance industry in Hong Kong.

Elsewhere in Hong Kong, the Green and Sustainable Finance Cross-Agency Steering Group, in its recent meeting, outlined a work plan focused on harnessing financing and investment opportunities related to the low carbon transition in the Asia-Pacific Region.

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