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Insurance Authority consults the public on subsidiary legislation for the Risk-based Capital regime related to requirements on valuation, capital and regulatory submissions


5 December 2023


The Insurance Authority (IA) today (5 December 2023) launched a six-week public consultation on the draft Insurance (Valuation and Capital) Rules (Cap.41R) and the draft Insurance (Submission of Statements, Reports and Information) Rules (Cap.41S) to tie in with the implementation of the Risk-based Capital (RBC) regime.

The draft Insurance (Valuation and Capital) Rules set out the detailed capital adequacy requirements and prescribe the valuation of assets and liabilities of insurers under the RBC regime, whereas the draft Insurance (Submission of Statements, Reports and Information) Rules stipulate the types of returns, as well as frequency and manner of submission to the IA.

The Insurance (Amendment) Bill 2023 was passed by the Legislative Council in July this year which provides the legal framework for the implementation of the RBC regime in Hong Kong. The RBC regime does not only strengthen the financial soundness of insurers and put Hong Kong on a par with international standards, but also incentivises better asset-liability matching and cultivation of robust risk management culture of insurers.

The consultation paper is now available on the IA website. Members of the public are welcome to submit their comments to the IA on or before 16 January 2024 by email to [email protected] or by post to the IA office on 19/F, 41 Heung Yip Road, Wong Chuk Hang, Hong Kong.

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