Consultation conclusions on draft Rules on Risk-based Capital regime

The Insurance Authority (IA) has released the consultation conclusions on six draft Rules that will facilitate the implementation of the Risk-based Capital (RBC) regime. The IA had previously published the draft Rules in two batches in December 2023 and January 2024, seeking public input. The feedback received from respondents was generally positive, although there were comments regarding capital requirements and the valuation of assets and liabilities. Taking into account the feedback, the IA has made amendments to certain original proposals. The six Rules that have been finalized are as follows: Insurance (Exemption to Appointment of Actuary) Rules (Cap. 41Q), Insurance (Valuation and Capital) Rules (Cap. 41R), Insurance (Submission of Statements, Reports and Information) Rules (Cap. 41S), Insurance (Maintenance of Assets in Hong Kong) Rules (Cap. 41T), Insurance (Marine Insurers and Captive Insurers) Rules (Cap. 41U), and Insurance (Lloyd’s) Rules (Cap. 41V). These final Rules will be presented to the Legislative Council for negative vetting in May 2024, and they are expected to come into operation simultaneously with the commencement of the Insurance (Amendment) Ordinance 2023. Resources: https://www.ia.org.hk/en/infocenter/press_releases/20240425.html