Insurance Authority welcomes Government's introduction of Insurance (Amendment) Bill 2023 to implement risk-based capital regime
保險業監管局歡迎政府提交修訂條例草案以實施風險為本資本制度
The Insurance (Amendment) Bill 2023 was gazetted on 6 April 2023, providing the legal framework for implementing a risk-based capital regime for Hong Kong's insurance industry, which the Insurance Authority welcomed. The regime requires insurers to maintain capital levels commensurate with the risks they assume, comprising three pillars: quantitative assessment, corporate governance and risk management, and disclosure requirements. The Bill provides the legal basis for the first and third pillars.
The Bill still requires scrutiny by the Legislative Council after gazettal. The article sets out the division of roles among the three pillars and notes that the second pillar is already covered by guidelines effective since 2020, allowing readers to understand the progression of capital requirements for insurers.
Source: 保監局·新聞稿 · ia.org.hk