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The new contract policy reserve rates in each currency for 2nd-half 2020

In view of the impact of the outbreak of COVID-19 on the global economy in early 2020, the Federal Reserve Board and central banks around the world have recently reduced interest rates. Taking into account that the Treasury bond rates of each currency are going downward, in order to give balanced attention to the needs for stability of premium rates and companies’ solvency, the FSC on 14 May 2020 announced the new contract policy reserve rates that will apply to life insurance policies in various currencies in the second half of 2020. Compared with the reserve rates that have applied since 1 January 2020, the new contract policy reserve rate with liability durations in NT Dollars, US Dollars, and Australian Dollars have been lowered by 0.25, 0.50, and 1.00 percentage points, respectively. The rate for policies having euro-denominated liabilities with a duration of 10 years or less have been kept unchanged, while for those with a duration exceeding 10 years the rate has been lowered by 0.25 percentage points. For new policies with liabilities denominated in Renminbi, the policy reserve rate has been cut by 0.75 percentage points for policies having liabilities with a duration of 10 to 20 years, while the rate for policies having liabilities with other durations has been lowered by 0.50 percentage points.
Visitor: 183   Update: 2020-07-23
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