Low interest rates are making it difficult for life insurers to hit return thresholds, and capital charge costs on private assets are forcing them to head up the credit risk curve, say experts.
Senior executives at the two life insurers shared how they and peers should adapt their investment portfolios ahead of Hong Kong's new risk-based capital regime.
The US-based life insurer has said it might leave the Taiwan market. If it does so, it will follow in the wake of other foreign players such as ING and AIG.
The preferential treatment that reduces the cost of capital for Chinese insurers when they buy reinsurance in Hong Kong could change once the city adopts a new RBC regime.
The FSC exclusively told AsianInvestor that it intends to divide the capital structure of local insurers into two tiers. Analysts believe this will make them more prudent investors.
Paul Carrett says he supports the use of derivatives to hedge risks and execute promptly and hopes the new RBC regime doesn’t limit the investment opportunities available to insurers.
Hong Kong's incoming solvency rules for insurers will have a big impact on their fixed income portfolios just as they will on their higher-risk asset holdings, warn industry experts.
The Taiwanese insurer is among those pushing for a reduction in the capital charge for certain types of local stocks, despite concerns about the potential risks in some quarters.
Ontario Teachers seeks Asia head; Vanguard shuffles leadership; Fidelity promotes Daisy Ho; Jupiter hires for EM debt; MBK Partners loses Kung; State Street names alts chief; RBC ITS brings in Kriesel; Credit Suisse replaces Thai wealth head; Henderson, Janus name bond chief.
Mainland insurers will continue handing out mandates for alternatives and equity portfolios, despite Beijing's new solvency rules monitoring their risk exposure, heard an AsianInvestor forum.
Senior executives at the Canadian insurer’s Malaysian and Philippine units explain how risk capital charges will further exacerbate the investment challenges they face.
While Southeast Asian nations have forged ahead with new risk-based capital rules, other countries, such as Hong Kong and Korea, are seen to be lagging.