Reported about 1 year ago
In order to strengthen the financial structure of life insurance, Wei Baosheng, Chairman of Shin Kong Financial Holding and Shin Kong Life, suggests revising the reserve allocation method to allow the death profit differential offset reserves from cancelled or claimed policies to be converted into capital, totaling about 100 billion NT dollars for Shin Kong Life. Wei is also considering reinsuring some policy risks to reduce risk and increase capital adequacy ratio. Wei, who previously allowed death profit differential offset and financial reinsurance during his term as Director of Insurance, now faces the challenge of reinforcing financial structure under immense pressure, with an estimated total industry reserve of 500 to 600 billion NT dollars, including around 1,000 billion NT dollars for Shin Kong Life.
Source: YAHOO