Featured Product

    IA Issues QIS 3 Package for Development of Risk-Based Capital Regime

    August 16, 2019

    IA of Hong Kong issued templates and technical specifications for the third quantitative impact study (QIS 3) 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. IA has also published template and technical specifications related to Key Insurance Risks and Trends (KIRT) Survey. Authorized insurers have been requested to participate in the QIS 3 and the KIRT survey and submit the completed template(s) by November 29, 2019.

    The QIS 3 package contains a template for submission and a template for reference, 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. The matching adjustment package stipulates the requirements in determining the discount rates for the valuation of insurance liabilities. Matching adjustment aims to reflect the assets held by individual companies in supporting the insurance liabilities and their asset and liability management practices.

    The QIS 3 package represents the collaborative effort of IA and the industry. In developing the QIS 3 package, IA has worked on the industry data collected from the second quantitative impact study (QIS 2) and engaged representatives of the Hong Kong Federation of Insurers and the Actuarial Society of Hong Kong for a technical discussion, which includes the approach for moderation and re-calibration. In addition, the QIS 3 package has taken into account international standards and practices, particularly the global Insurance Capital Standard (ICS) being developed by the IAIS. QIS 3 is contributory to forming the data set for the insurance industry in Hong Kong. The result would form the basis for IA to finalize the set of rules on Pillar 1 capital requirement, after which a consultation process is expected to be carried out in 2020.  

    For the annual KIRT survey, HKMA will transmit only aggregated industry data set to IAIS. IAIS plans to annually conduct a global monitoring exercise in the form of KIRT survey to collect relevant data, with the goal of developing a holistic framework for systemic risk in the global insurance sector. The data will enable insurance supervisors to identify and address the potential buildup of systemic risk in the insurance sector. 

     

    Related Links

    Comment Due Date: November 29, 2019

    Keywords: Asia Pacific, Hong Kog, Insurance, Risk-based Capital Regime, QIS 3, Matching Adjustment, Systemic Risk, KIRT Survey, IAIS, IA

    Featured Experts
    Related Articles
    News

    UK Regulators Announce Measures to Address Impact of COVID-19

    UK Regulatory Authorities published statements and guidance addressed to financial entities on dealing with the impact of the coronavirus (COVID-19) outbreak.

    March 26, 2020 WebPage Regulatory News
    News

    ISDA and Industry Request Delay in Timeline for Initial Margin Rules

    Considering the challenges posed by the COVID-19 pandemic, ISDA submitted a letter on behalf of 21 industry associations and their members requesting BCBS, IOSCO, and global regulators to suspend the current timeline for the initial margin phase-in.

    March 26, 2020 WebPage Regulatory News
    News

    FCA, FRC, and PRA Issue Joint Statement to Address Impact of COVID-19

    In response to the COVID-19 outbreak, FCA, the Financial Reporting Council (FRC), and PRA have announced a series of actions and made statements to support the continued functioning of capital markets in the UK.

    March 26, 2020 WebPage Regulatory News
    News

    EC Rule Corrects Regulation Supplementing Solvency II Directive

    EC published the EU Delegated Regulation 2020/442, which corrects the EU Delegated Regulation 2015/35 that supplements Solvency II Directive (2009/138/EC).

    March 26, 2020 WebPage Regulatory News
    News

    FED and FFIEC Offer Reporting Relief to Institutions Due to COVID-19

    FED and FFIEC announced regulatory reporting relief to financial institutions due to disruptions caused by the COVID-19.

    March 26, 2020 WebPage Regulatory News
    News

    EBA and ESMA Clarify Accounting Implications of COVID-19 Measures

    EBA and ESMA issued statements to address certain accounting implications of the economic support and relief measures adopted by EU member states in response to the COVID-19 crisis.

    March 25, 2020 WebPage Regulatory News
    News

    IOSCO and Securities Regulators Coordinate Responses to COVID-19

    IOSCO members are cooperating closely on their responses to the COVID-19-related disruption in capital markets.

    March 25, 2020 WebPage Regulatory News
    News

    US Agencies Issue Interim MMLF Rule, FED Updates FR Y-14 Forms

    In an effort to mitigate the impact of economic disruptions due to the COVID-19 outbreak, Money Market Mutual Fund Liquidity Facility (MMLF) was launched in the US to enhance the liquidity and functioning of money markets and to support the economy.

    March 25, 2020 WebPage Regulatory News
    News

    ESRB Updates List of Countercyclical Capital Buffers in March 2020

    ESRB updated the list of countercyclical capital buffer (CCyB) rates applicable in countries in the Eurosystem.

    March 24, 2020 WebPage Regulatory News
    News

    FHFA Amends Stress Testing Rule for Regulated Entities

    FHFA adopted a final rule that amends the stress testing rule, in line with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

    March 24, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4890