New independent insurance regulator for Hong Kong

New independent insurance regulator for Hong Kong

New independent insurance regulator for Hong Kong

In Hong Kong, the Insurance Authority will replace the Office of the Commissioner of Insurance (OCI) in regulating insurance companies, with effect from 26 June 2017. The OCI will be disbanded on the same day. The Insurance Companies (Amendment) Ordinance 2015 (Amendment Ordinance) will enable the Insurance Authority to take over the statutory functions of the OCI. The Insurance Authority…

Survey shows Chinese insurers are well capitalised

Survey shows Chinese insurers are well capitalised

Survey shows Chinese insurers are well capitalised

The vast majority of Chinese insurers are well capitalised, according to a survey carried out by the Chinese insurance regulator, with just five insurers out of 170 surveyed “near regulatory red lines in the first quarter”, Reuters reported. The China Insurance Regulatory Commission (CIRC) said in a statement that the comprehensive solvency ratio for the industry reached 238% at the…

Moody’s downgrades China’s sovereign rating

Moody’s downgrades China’s sovereign rating

Moody’s downgrades China’s sovereign rating

Credit ratings agency Moody’s has cut China’s sovereign rating for the first time in nearly 30 years, sending many of its stocks downwards in one of the biggest single-day drops endured this year on China’s stock market. Moody’s said the decision was based on fears of rising debt and slowing economic growth, and the expectation that “China’s financial strength will…

Moody’s downgrades four Chinese insurers after sovereign rating downgrade

Moody’s downgrades four Chinese insurers after sovereign rating downgrade

Moody’s downgrades four Chinese insurers after sovereign rating downgrade

The insurance financial strength ratings (IFSRs) of four Chinese insurers, including two captives, have been downgraded and their outlooks revised to stable from negative by Moody’s Investors Service. The move follows Moody’s decision to downgrade China’s sovereign rating to A1 stable from Aa3 negative. China Life Insurance Co and PICC Property and Casualty Company have been downgraded to A1 from…

An introduction to China’s new cyber security law

An introduction to China’s new cyber security law

An introduction to China’s new cyber security law

On 7 November 2016, the Cybersecurity Law of the People’s Republic of China was enacted and widely heralded as the first comprehensive law dealing specifically and exclusively with cybersecurity issues in China. The law, which will take effect from 1 June 2017, was passed to promote two key objectives: 1) protect the state against cybersecurity attacks; and 2) protect the…

Hong Kong and mainland China regulators sign agreement on equivalence assessment

Hong Kong and mainland China regulators sign agreement on equivalence assessment

Hong Kong and mainland China regulators sign agreement on equivalence assessment

Hong Kong’s Office of the Commissioner of Insurance and the China Insurance Regulatory Commission (CIRC) have signed an agreement to conduct an equivalence assessment on the insurance solvency regulatory regimes of mainland China and Hong Kong. The objectives of the Equivalence Assessment Framework Agreement on Solvency Regulatory Regime are to achieve mutual equivalence recognition of the solvency regulatory regimes in…

WannaCry attack brings moment of truth for cyber insurance market

WannaCry attack brings moment of truth for cyber insurance market

WannaCry attack brings moment of truth for cyber insurance market

The recent WannaCry ransomware attacks that affected businesses, government agencies and individuals in more than 150 countries could be a seminal moment for the cyber insurance market. This is especially true in Asia, where a combination of outdated security systems, a lack of reporting on cyber attacks and a low take-up of cyber insurance have all been highlighted by the…

International business groups ramp up pressure on China over new cyber law

International business groups ramp up pressure on China over new cyber law

International business groups ramp up pressure on China over new cyber law

International business groups have requested that the Chinese government delay the introduction of its new cyber law planned for 1 June because they believe it could unfairly penalise foreign companies and limit the development of the country’s IT infrastructure in the long run. The new cyber law mandates strict data surveillance and storage for firms that work in China. In…

IMF report highlights Asia’s ageing crisis

IMF report highlights Asia’s ageing crisis

IMF report highlights Asia’s ageing crisis

Despite its status as the world leader in growth, the Asia-Pacific region must address its ageing population or else face the risk of growing old before becoming rich. This is the finding from the International Monetary Fund’s (IMF) Regional Economic Outlook for May 2017. While the outlook for the region remains robust, it also faces a near-term outlook full of…

China to tighten up insurance sector regulation

China to tighten up insurance sector regulation

China to tighten up insurance sector regulation

The China Insurance Regulatory Commission (CIRC) is to tighten supervision of the insurance industry to guard against financial risks and deal with loopholes in the current insurance regulation, which have given rise to risky practices in recent years. According to the Xinhua News Agency, a statement from the CIRC says that insurance regulators at all levels should shore up weak…

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