Reported about 1 year ago
For the first time, on July 4, 2024, insurers are required to set aside capital reserves for investing in government bonds. The FSC announced a new method for calculating the Risk-Based Capital (RBC) at the end of June, now requiring Russian bonds without ratings to be reclassified as Caa1 with a higher risk coefficient of 0.14, necessitating a capital provision of 14 billion out of 100 billion. Seven life insurers still hold Russian bonds, with concerns about the RBC values by the end of June. Notably, Nan Shan Life has the highest exposure at around 300 billion NT dollars, followed by Cathay Life at 200 billion NT dollars. The article also discusses the impact on insurers' RBC due to the fluctuation of the exchange rates and the concerns faced by companies like Shin Kong Life and New Life in meeting RBC requirements.
Source: YAHOO