Hong Kong begins risk-based capital regime for insurers
This follows the enactment of the Insurance (Amendment) Ordinance 2023.
Hong Kong’s risk-based capital (RBC) regime for the insurance industry has officially come into effect as of today.
This follows the enactment of the Insurance (Amendment) Ordinance 2023, along with related subsidiary legislation and new guidelines from the Insurance Authority (IA).
“The introduction of the RBC regime will strengthen the financial soundness of insurers in Hong Kong by taking a modular approach for an assessment more sensitive to each insurer’s risk profile while providing closer alignment with international standards,” an IA spokesperson said in a media release.
“Its implementation marks a significant milestone for the insurance industry, enhancing protection for policyholders and solidifying Hong Kong’s role as a global insurance hub.” they added.
The IA has worked closely with industry stakeholders since the passage of the Insurance (Amendment) Bill 2023 and will continue to engage with the industry during the regime's implementation.