Hong Kong’s Insurance Authority hails amendment bill for risk-based capital

Preparatory work for the RBC regime will be followed by a public consultation.

The Insurance Authority (IA) of Hong Kong has expressed its satisfaction with the passing of the Insurance (Amendment) Bill 2023. 

The bill establishes the legislative framework for the implementation of the Risk-based Capital (RBC) regime in the Hong Kong insurance industry.

The IA spokesperson highlighted that the RBC regime will bolster insurers' financial stability and play a crucial role in strengthening Hong Kong's position as a global financial centre. 

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The IA plans to collaborate closely with the insurance industry to ensure a smooth transition to the RBC regime.

Preparatory work for defining the detailed requirements of the RBC regime will commence, followed by public consultation on subsidiary legislation. The implementation of the RBC regime is targeted for 2024.