Opportunities rise for insurers as Asia Pacific strengthens solvency regulations

March 18 2015 by InsuranceAsia News Staff

Asia insurers are now seeing further opportunities as countries in the Asia Pacific region move to strengthen their solvency regulations, the latest Asia Pacific Solvency Regulation report by Aon Benfield showed.

While China’s second-generation solvency regime C-ROSS (China Risk Oriented Solvency System) was considered to be the most significant change since last year, the report stressed that markets such as Hong Kong and Sri Lanka are moving towards risk-based capital (RBC) while developed markets are pushing their existing RBC to a new level.

C-ROSS was published in mid-February by the China Insurance Regulatory Commission. According to Sifang Zhang, Asia Pacific head of Aon Benfield Analytic’s Rating Agency Advisory team, the region’s currently low insurance penetration rates and fast-growing economies present many opportunities for insurers.