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Asian News - Malaysia: Regulatory risk parameters to be scrutinised

Source: Asia Insurance Review | Aug 2016

Bank Negara is to further review the risk parameters for the regulation of the local insurance industry over the next two to three years, while keeping close tabs globally on the development of international capital standards in the industry.
 
   Assistant Governor Jessica Chew said that since the introduction of the risk-based capital (RBC) framework in Malaysia in 2009, the central bank has been closely monitoring developments, reported The Star newspaper.
 
   She said: “Reviewing the risk parameters is an ongoing initiative by the central bank to take into account global developments and changes in risk exposures as well as developments in the financial markets.
 
   “As more clarity emerges from global developments and our work in this area, the bank will then only review the RBC framework and further refine the risk parameters.” 
 
   Ms Chew added that the industry in Malaysia on the whole is well-capitalised with a capital adequacy ratio of above 200%, with most insurers required to hold between 150% and 180%. There are currently 55 insurance companies in the country, of which 40 are conventional insurers (general and life insurers) and 15 takaful players (family and general).
 
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