Featured Product

    IA Issues QIS 2 Templates for Development of Risk-Based Capital Regime

    August 13, 2018

    IA of Hong Kong issued templates and technical specifications for the second quantitative impact study (QIS 2) on the development of risk-based capital (RBC) regime. Additionally, IA released a package of template and technical specifications on matching adjustment for insurers conducting long-term business. Authorized insurers have been requested to participate in the QIS 2 and submit the completed template(s) by November 30, 2018.

    IA released two different packages for QIS 2—one for insurers carrying on long-term business and the other for insurers carrying on general business. Composite insurers should use both packages in respect of long-term and general business. Each package contains a template collecting quantitative and qualitative data, technical specifications for the completion of the corresponding template, annex on discount rates, and a question and answer template. IA also finalized the package of template and technical specifications on matching adjustment for insurers carrying on long-term business. IA aims to collect sufficient and relevant data from the matching adjustment package to further analyze and formulate a set of eligible criteria in applying matching adjustment as well as to determine the adjusted spread methodology. Matching adjustment is an alternative discounting approach that reflects the assets held by individual companies based on their policies for asset and liability management.

    QIS 2 is important and will offer a holistic view of the solvency position of individual insurers and the insurance industry. This would form a basis for IA to move forward to the next step of moderation exercise and to perform further testing in the third QIS. While developing the RBC regime, IA is mindful of the overarching objectives, including alignment with international standards and practices, resilience of the insurance industry for the protection of policyholders, and maintaining competitiveness of the Hong Kong insurance industry. IA has maintained close dialog with the insurance industry. Taking into account the industry feedback, IA is open to explore test options, for example, on discount rate of the long-term insurance liabilities. IA has also reflected on the feedback in certain areas in QIS 2, for example, alignment with the Hong Kong Financial Reporting Standard (HKFRS) 17 on insurance contracts to a certain extent and the proposed stress levels of certain risks. This would be a continuous process of moderation exercise, aiming to strike a balance toward a pragmatic and effective approach.

     

    Related Links

    Comment Due Date: November 30, 2018

    Keywords: Asia Pacific, Hong Kong, Insurance, Risk-based Capital Regime, QIS 2, HKFRS 17, Matching Adjustment, IFRS 17, IA

    Featured Experts
    Related Articles
    News

    PRA Revises Branch Return and Updates Guidance for Regulatory Reports

    PRA published the policy statement PS17/19, which contains the final policy related to changes in the format and content of the Branch Return Form and reporting guidance.

    September 12, 2019 WebPage Regulatory News
    News

    FINMA Outlines Treatment of Stablecoins in Supplement to Guide on ICO

    FINMA published a supplement to its initial coin offerings (ICOs) guidelines, outlining the treatment for stablecoins under the Swiss supervisory law.

    September 11, 2019 WebPage Regulatory News
    News

    Ursula von der Leyen Presents Structure of Next European Commission

    President-elect Ursula von der Leyen has presented her team and the new structure of the next European Commission.

    September 10, 2019 WebPage Regulatory News
    News

    FED Proposes to Revise and Extend Reporting Form on Systemic Risk

    FED proposed to extend for three years, with revision, the Banking Organization Systemic Risk Report (FR Y-15; OMB No. 7100-0352).

    September 10, 2019 WebPage Regulatory News
    News

    EBA Issues Revised List of Validation Rules for Reporting

    EBA published the revised list of validation rules (version 2.9) in its implementing technical standards on supervisory reporting.

    September 10, 2019 WebPage Regulatory News
    News

    Bundesbank Publishes Supplementary Validation Rules for Reporting

    Bundesbank published the updated document containing supplementary validation rules in the context of the implementation of the reporting system at national level.

    September 10, 2019 WebPage Regulatory News
    News

    APRA Licenses Xinja Bank as Authorized Deposit-Taking Institution

    APRA granted Xinja Bank Limited a license to operate as an authorized deposit-taking institution without restrictions, under the Banking Act 1959.

    September 09, 2019 WebPage Regulatory News
    News

    FDIC Proposes Revisions to Regulations on Interest Rate Restrictions

    FDIC proposed revisions to its regulations covering interest rate restrictions that apply to less than well-capitalized insured depository institutions.

    September 09, 2019 WebPage Regulatory News
    News

    EBA Intends to Clarify End-Treatment of Grandfathered Instruments

    EBA announced its intention to clarify the prudential treatment applicable to own funds instruments at the end of the grandfathering period, which expires on December 31, 2021.

    September 09, 2019 WebPage Regulatory News
    News

    IMF Releases Reports on 2019 Article IV Consultation with Saudi Arabia

    IMF published its staff report and selected issues report in context of the 2019 Article IV consultation with Saudi Arabia.

    September 09, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3799