HKIA seeks public input on subsidiary legislation for risk-based capital regime
This consultation comes after the implementation of the Risk-based Capital (RBC) regime.
The Insurance Authority (IA) of Hong Kong initiated a six-week public consultation on 5 December, concerning the draft Insurance (Valuation and Capital) Rules (Cap.41R) and the draft Insurance (Submission of Statements, Reports and Information) Rules (Cap.41S). This move is aligned with the implementation of the Risk-based Capital (RBC) regime.
The draft Insurance (Valuation and Capital) Rules outline specific capital adequacy requirements and prescribe the valuation of assets and liabilities for insurers under the RBC regime.
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On the other hand, the draft Insurance (Submission of Statements, Reports and Information) Rules detail the types of returns, as well as the frequency and manner of submission to the IA.
The implementation of the Risk-based Capital regime is supported by the Insurance (Amendment) Bill 2023, which was passed by the Legislative Council in July.
This legislation provides the legal framework for the RBC regime in Hong Kong. The RBC regime aims not only to enhance the financial stability of insurers and align Hong Kong with international standards but also to encourage better asset-liability matching and foster a robust risk management culture among insurers.