The Insurance Authority (IA) of Hong Kong has initiated a six-week public consultation on two draft rules: the Insurance (Valuation and Capital) Rules (Cap.41R) and the Insurance (Submission of Statements, Reports and Information) Rules (Cap.41S), aligning with the upcoming implementation of the Risk-based Capital (RBC) regime.
According to a news release, the proposed Insurance (Valuation and Capital) Rules outline specific capital adequacy requirements for insurers, detailing how assets and liabilities should be valued under the RBC framework. Conversely, the draft Insurance (Submission of Statements, Reports and Information) Rules define the types of returns required, including their submission frequency and method to the IA.
This public consultation follows the passage of the Insurance (Amendment) Bill 2023 by the Legislative Council in July, which laid the legal groundwork for introducing the RBC regime in Hong Kong. The RBC regime is aimed at bolstering the financial stability of insurers, aligning Hong Kong with international standards, and encouraging insurers to adopt more effective asset-liability matching and robust risk management practices.
The consultation paper is accessible on the IA's website. Stakeholders and members of the public are invited to share their feedback with the IA by Jan. 16.
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