Regulatory Alerts2015-11-24
Added · Updated
Amendments Proposed to Improve Competitiveness of Insurance Industry
The Financial Services Commission proposes repealing standard interest rates used for setting policy reserves and premiums, and phasing out interest rates for interest rate-linked insurance products. The proposal raises caps on loss adjustment to premiums from ±30% to ±50% in 2016 before phasing out in 2017, and increases the cap on risk adjustment from ±25% to ±30% in 2016 and ±35% in 2017 before conditional phase-out in 2018. These amendments to the Regulation on Supervision of Insurance Business are scheduled to take effect on January 1, 2016.