Guy Carpenter today published an assessment of the development of solvency requirements and Asia Pacific (APAC) region. According to the report, these developments are driven by four key motivators, including the need to improve resiliency post-catastrophic loss; to increase oversight in a post-Great Recession world; to follow best practices from the banking and international insurance sectors; and finally, to satisfy domestic political pressures. "Many recent updates to
- South Korea, RBC) schemes.
- Hong Kong is moving to its first RBC framework, anticipated in 2018.
- Australia and Malaysia have implemented Internal Capital Adequacy Assessment Process (ICAAP) requirements.
- Singapore and Japan are among the countries considering an Own Risk and Solvency Assessment (ORSA) framework.
- Japan is seeking third-country equivalence status for Solvency II for reinsurance business.
- China's Insurance Regulatory Commission (CIRC) is instituting sweeping changes through its three-tiered China Risk Oriented Solvency System (C-ROSS) framework that will dramatically impact how (re)insurers conduct business.