It will make them more closely aligned with their international peers under similar solvency regimes.
The RBC 2 regime is being formulated in line with the terms of the ICP17 (insurance core principles) capital-adequacy standards.
“The more robust rules will increase confidence around the financial strength of the sector. But several challenges lie ahead, in particular for medium and small players that will need to cope with potentially more stringent capital requirements,” Jeffrey Liew, head of Fitch’s Asia-Pacific insurance ratings group, said at an industry briefing organised by Fitch Ratings (Thailand) in Bangkok.
Liew also discussed Fitch’s insurance rating methodology and Prism factor-based model used in assessing the financial strength of life and non-life insurers across the Asia-Pacific region.
Underwriting, investment and capital assessments are among the many fundamental building blocks of the agency’s approach to rating the insurance sector’s financial strength.
Chuchatr Pramoolpol, deputy secretary-general of Thailand’s Insurance Commission, outlined the outlook for the country’s regulatory framework and the changes in investment and solvency rules.
Julien Godart, senior manager and Asean technology lead for Accenture Consulting Singapore, discussed the use of big data and analytics for the insurance industry to tackle fraud and improve regulatory compliance.
More than 80 participants from the regulatory, insurance and financial sectors attended the briefing.