Capital regulations for life insurance companies in Asia are complex and varied, with changes often affecting how insurers manage their business. In many markets, regulators are “upgrading” existing risk-based capital (RBC) frameworks, or are introducing RBC regimes for the first time, while increasingly considering their consistency with the Insurance Capital Standard, the new International Financial Reporting Standard 17, and other frameworks worldwide. This 7th edition of the “Milliman Capital Regimes” report covers the existing or upcoming capital regimes in 15 Asian markets and examines additional frameworks impacting insurer balance sheets.

Highlights

• Review of the status of capital regimes
• Evaluation of deterministic insurance liabilities
• Determination of the discount curve
• Comparison of key parameters for downward shocks in interest rates for selected maturities
• Typical industry solvency ratio levels
• Risk charge breakdown: insurance capital requirement versus others
• Observations on time value of options and guarantees in selected markets