Taiwan further loosens offshore investment restrictions

March 18 2016 by InsuranceAsia News Staff

Taiwanese insurers will soon be allowed to allocate a greater portion of their assets to offshore investments after the Financial Supervisory Commission (FSC) further loosened the overseas investment restrictions.

From the current cap of 30% of total assets, the FSC will introduce a ‘three-tier’ system in determining the allocations for domestic insurers.

Firms with risk-based capital (RBC) ratio of more than 300% will be permitted to invest up to 40% of their total assets, or 3% of their investment capital, in overseas markets under the third-tier category.

Those with an RBC ratio of between 250% and 300% will be allowed to invest up to 40% of their total assets, or 2.5% of their investment capital abroad, under the second-tier category.

The first-tier category includes insurers with RBC ratios of less than 250%, which will be allowed to allocate just up to 10% of their total assets, or 1% of their investment capital, abroad.

The loosened overseas investment restrictions will become effective later this month.

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