Consultation conclusions on the Insurance (Group Capital) Rules

28 December 2020

The Insurance Authority (IA) today (28 December 2020) published the consultation conclusions on the draft Insurance (Group Capital) Rules (the Group Capital Rules) in respect of the new supervisory framework for multinational insurance groups (GWS framework), tentatively to be implemented in the first quarter of 2021.

The main objective of the proposed Group Capital Rules is to set out the requirements in relation to capital, regulatory reporting and public disclosure that apply to an insurance holding company in relation to its insurance group. The Group Capital Rules will apply to insurance holding companies which are designated by the IA as being subject to the GWS framework.

The IA had actively engaged the relevant stakeholders in devising the Group Capital Rules. Respondents of the public consultation were generally supportive of the proposals set out in the draft Group Capital Rules, which have been further refined after careful consideration of the feedback received.

The Group Capital Rules will be submitted to the Legislative Council for scrutiny. Subject to the legislative progress, the Group Capital Rules are expected to come into operation together with the Insurance (Amendment) (No. 2) Ordinance 2020¹ in the first quarter of 2021.

Ends

Note:

¹The Insurance (Amendment) (No.2) Ordinance 2020 seeks to consolidate a clear and firm legal basis for the IA to exercise direct regulatory powers over the holding companies of multinational insurance groups. The relevant bill was passed by the Legislative Council in July 2020.