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The Insurance Authority (IA) today (September 16) launched a three-month consultation on the proposed Risk-based Capital (RBC) framework for the insurance industry of Hong Kong and invited comments from interested parties, especially the insurance industry and professional bodies.
Explaining the consultation proposals, the Commissioner of Insurance, Ms Annie Choi, said, "The RBC framework seeks to align Hong Kong's regime with international requirements and make capital requirements more sensitive to the levels of risk that insurance companies are bearing.
"The move towards developing an RBC framework does not necessarily imply a need for individual insurance companies to increase or decrease their capital."
Ms Choi added, "The consultation document focuses on the objectives, overarching principles and proposed framework for the RBC regime. Building on these overarching principles and the responses received, the IA will then develop detailed proposals, carry out quantitative impact studies and conduct further consultation. It will take at least two to three years to complete all the preparatory tasks before the RBC regime can be implemented. The new RBC regime will be rolled out in phases with a sufficiently long run-in period so that insurers will be able to achieve full compliance incrementally."
Insurance regulators in many jurisdictions have ushered in RBC regimes. In developing the proposed RBC framework, the IA has taken into account the relevant Insurance Core Principles issued by the International Association of Insurance Supervisors, experience in other jurisdictions, and the domestic market landscape.
The consultation paper can be downloaded from the website of the Office of the Commissioner of Insurance at www.oci.gov.hk. Interested parties are welcome to send their written comments to the Office of the Commissioner of Insurance, 21/F, Queensway Government Offices, 66 Queensway, Hong Kong, or by fax to 2869 0252, or by email to rbc_consultation@oci.gov.hk on or before December 15, 2014.
Ends/Tuesday, September 16, 2014
Issued at HKT 16:30
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