Insurers brace for impact of new risk-based capital rules
Their capital adequacy ratios are estimated to fall by 50-60% under the proposed RBC 2
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Singapore
INSURERS here are bracing themselves for choppy waters ahead as proposed enhancements to the existing risk-based capital framework (RBC 1) imply substantially higher capital requirements, forcing them to relook their product offerings and investment strategies.
The Business Times understands that existing capital adequacy ratios (CARs), which assess insurers' solvency, are estimated to fall by 50-60 per cent under the proposed RBC 2, the framework that sets out the capital buffer insurers need to provide.
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