What is Taiwan's financial regulator considering for insurers?

Taiwan's financial regulator is considering requiring life insurers to hold additional capital against certain lower-rated foreign government bond holdings.

How large is the overseas portfolio of Taiwanese insurers?

Taiwanese insurers manage approximately $700 billion in foreign assets.

Why has scrutiny increased on insurers' foreign bond holdings?

Local lawmakers have intensified scrutiny following geopolitical volatility in regions like Latin America.

Home / Business and Economy / Taiwan Insurers Face Capital Hikes for Foreign Bonds

Taiwan Insurers Face Capital Hikes for Foreign Bonds

13 Feb

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Summary

Taiwan's regulator considers higher capital for insurers' below-A rated foreign bonds.
The move targets insurers' $700 billion overseas investment portfolio.
Local lawmakers increased scrutiny after geopolitical volatility.

Taiwan Insurers Face Capital Hikes for Foreign Bonds

Taiwan's financial regulator is considering implementing additional capital requirements for life insurers holding certain lower-rated foreign government bonds. This initiative is part of a broader effort to strengthen risk management over the industry's approximately $700 billion in overseas assets.

The Financial Supervisory Commission (FSC) is evaluating the imposition of risk provisioning for sovereign debt rated below 'A'. Discussions are ongoing regarding the precise methodology for calculating these capital charges, with the final plan subject to potential modifications.