Thailand drafting second phase of RBC frameworkNovember 17 2016 by InsuranceAsia News Staff
Changes lie ahead for Thailand’s insurance industry as the country drafts the second phase of the Risk-Based Capital (RBC 2) framework.
Once the new regulations are implemented, the risk profiles of Thailand’s insurers are expected to get a boost, according to Fitch Ratings, as it will make them more closely aligned with those of their international peers under similar solvency regimes.
The RBC 2 regime is being formulated in line with the terms of the ICP17 (Insurance Core Principles) Capital Adequacy standards.
Jeffrey Liew, head of Fitch’s Asia-Pacific insurance ratings group, said that with the more robust rules in place, there will be more confidence in the financial strength of the sector.
However, there are also challenges that need to be addressed, especially for small and medium players that will need to cope with potentially more stringent capital requirements.
- June 22
The central bank has warned of a corresponding drop in the solvency ratio of many insurers.
- June 14
New regulatory rules require better asset-liability management and reporting of cash flows.
- April 23
A rise in interest rates and dividend payouts took its toll on available capital in the fourth quarter of last year.
- March 29
The Taiwanese life insurance company is set to take up the forfeited options of Hyundai Mobis.