HONG KONG, Sept 7 (Bernama-BUSINESS WIRE) — AM Best believes Hong Kong’s proposed Group Capital Rule (GCR) will be beneficial to the group-wide risk and capital management culture of insurance entities.
A new Best’s Commentary, titled, “New Group Capital Rule to Boost Hong Kong Insurance Market,” states that the proposed regulation, which would augment the current regulatory framework to allow Hong Kong’s Insurance Authority (IA) to monitor multinational insurance groups on a group basis, will enhance the regulator’s supervision of insurance holding companies. The IA acts as the group supervisor to several multinational insurance organisations, and currently takes an indirect approach that mainly involves the continual fit and proper assessments of the insurance holding companies’ ability to manage their subsidiaries, as well as liaison and cooperation with other regulators of a group’s member operations.