More Asian markets embracing RBC regimes
Source: Asia Insurance Review | Feb 2017
The Philippines is set to be the next RBC market, with insurance companies strengthening their net worth to meet new mandatory increases. Thailand, meanwhile, is in the second phase of its RBC framework and is to align more closely with their international counterparts under similar solvency regimes. Singapore’s MAS is also looking at its own RBC2, in the expectation that it will create a more conducive environment for insurers to invest in equities and long-dated bonds and offer long-term insurance products for policyholders.
Different Asian markets are progressing at their own varied pace, and the speed of regulatory change continues to confound the industry, as regulators themselves are under pressure to keep with the IAIS core principles.
In emerging markets, tightened rules will increase confidence in the financial stability of the market but the smaller players may struggle as they brace themselves to meet the stringent capital requirements.
Whichever market it is, it is time for companies to get real and be proactive to build the capabilities to get through this period of increasing regulatory complexity and build a solid platform that will sustain your RBC regime into the future.
This year’s two-day Asia Conference on Risk-based Capital is targeted at CEOs, CFOs and CROs of insurance companies as well as regulators and will look at the drivers and lures of RBC regimes; how to embrace RBC painlessly and effectively; the concepts and application of RBC for life and general insurers; as well as the categories of risks measured from credit risks, asset risks, underwriting risks, operating risks, balance sheet risks and off-balance sheet risks. It will be held in Manila from 29-30 March 2017.