HONG KONG, Feb 20 (Bernama-BUSINESS WIRE) — The implementation of more stringent risk measurement under the Korean-Insurance Capital Standards (K-ICS) a year ago has led to a decline in the average solvency ratio for South Korea’s insurance industry, according to a new AM Best special report.
The enactment of K-ICS in South Korea, which began in January 2023 alongside the adoption of IFRS 17 accounting standards, will likely remain a major factor affecting the capital and business strategies of the country’s insurers. The new standards replace South Korea’s previous risk-based capital (RBC) regime with a more accurate and comprehensive risk management approach in order to better align it with global best practices and standards.