Featured Product

    IA Consults on Revised Guideline for Risk Management by Insurers

    January 03, 2019

    IA had published a second consultation on the revised guideline on enterprise risk management (ERM), with comment period ending on January 24, 2019. IA had conducted an initial consultation on the draft guideline on ERM in May 2018 and had received comments from the insurance industry and professional bodies. After studying the comments, IA has revised the draft guideline, for which it is seeking further consultation.

    The revised draft guideline, proposed to be effective on January 01, 2020, has also taken into account the overarching principles of developing the risk-based capital regime that include compliance with the Insurance Core Principles published by IAIS; the market landscape and needs of insurance industry; and the financial health and resilience of insurance industry for the protection of policyholders. The key feedback from the initial consultation and proposed enhancements was related to the following:

    • Principles-based approach
    • Three-tier group-wide supervisory approach
    • Introduction of “Pillar 2 Capital amount"
    • Preparation of the Own Risk and Solvency Assessment (ORSA) report
    • ORSA of Hong Kong branches of overseas insurers
    • Prescribed scenarios in Stress and Scenario Testing in ORSA
    • Regulatory capital requirements referred to in the ORSA Report
    • Relief measures in early years of implementation of the Guideline

    This second consultation is a critical step toward the expected finalization of the guideline in 2019. HKMA strongly encourages insurers to execute gap analysis, implement action plans to enhance their ERM framework, and put in place an ORSA as soon as is practical. The insurers facing practical issues with regard to the compliance with the guideline should contact their case officers and demonstrate to IA the practical difficulties encountered and formulate an action plan for phased implementation within a reasonable timeframe. 

     

    Related Links

    Comment Due Date: January 24, 2019

    Effective Date: January 01, 2020 (Proposed)

    Keywords: Asia Pacific, Hong Kong, Insurance, ERM, ORSA, Regulatory Capital, Pillar 2, Risk-based Capital Regime, ICP, IA

    Featured Experts
    Related Articles
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    News

    EBA Publishes Report on Asset Encumbrance of Banks in EU

    EBA published the annual report on asset encumbrance of banks in EU.

    January 18, 2021 WebPage Regulatory News
    News

    US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C

    FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.

    January 15, 2021 WebPage Regulatory News
    News

    EBA Proposes Guidelines for Establishing Intermediate Parent Entities

    EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.

    January 15, 2021 WebPage Regulatory News
    News

    EC Adopts Financial Reporting Changes Arising from Benchmark Reforms

    EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.

    January 14, 2021 WebPage Regulatory News
    News

    BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk

    BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.

    January 14, 2021 WebPage Regulatory News
    News

    HMT Updates List of Post-Brexit Equivalence Decisions in UK

    HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.

    January 14, 2021 WebPage Regulatory News
    News

    EBA Issues Erratum for Technical Package on Reporting Framework 3.0

    EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.

    January 14, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets

    APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.

    January 14, 2021 WebPage Regulatory News
    News

    ECB Letter Sets Out Strategies to Address Issue of Nonperforming Loans

    ECB published a letter from Andrea Enria, the Chair of the Supervisory Board of ECB, answering questions raised by the President of the Bundestag (the German federal parliament) on how ECB assesses the financial stability of the euro area in the context of the significant level of nonperforming loans.

    January 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6450