Hong Kong’s Insurance Authority (IA) has launched a six-week public consultation on the draft insurance group capital rules.
The consultation ties in with the implementation of the new supervisory framework for multinational insurance groups, also known as the GWS framework, scheduled for the first quarter of 2021.
According to the IA, the main objective of the proposed group capital rules is to set out the requirements regarding capital, regulatory reporting and public disclosure that apply to an insurance holding company, in relation to its insurance group. The group capital rules will apply to insurance holding companies that are designated by the IA as being subject to the GWS framework.
Due to the insurance industry’s globalised nature, the International Association of Insurance Supervisors (IAIS) requires insurance regulators to not only regulate insurers on a “solo” basis, but also to cooperate and coordinate with each other to ensure insurance groups are regulated on a “group-wide” basis.
The consultation paper is available on the IA’s website, and members of the public can submit their comments until September 30 via mail, fax or email.
