How will new solvency regimes impact investment portfolios and insurers' internal resources in China, Hong Kong and Taiwan? Six experts share their views.
Tag : solvency
Taiwan's biggest insurer braces for challenges as it increases its exposure to foreign bonds and dividend-yielding stocks ahead of the upcoming new capital regime.
The preferential treatment that reduces the cost of capital for Chinese insurers when they buy reinsurance in Hong Kong could change once the city adopts a new RBC regime.
The FSC exclusively told AsianInvestor that it intends to divide the capital structure of local insurers into two tiers. Analysts believe this will make them more prudent investors.
Hong Kong's incoming solvency rules for insurers will have a big impact on their fixed income portfolios just as they will on their higher-risk asset holdings, warn industry experts.
The draft guidelines form part of the new C-Ross solvency system, to which insurers in China must adapt over the next three years. They include reviewing asset-liability management.
Asset managers are offering newer structured products, which incorporate ideas from smart beta strategies, to raise yields.
While Southeast Asian nations have forged ahead with new risk-based capital rules, other countries, such as Hong Kong and Korea, are seen to be lagging.
China's insurers will have until December 31 to tweak their asset portfolios to meet new ratios. Foreign-affliated insurers are expected to file reports separately.
