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Amendments to the Directions for Life Insurance Companies to Engage the Credited Rates of Interest Sensitive Products

The FSC introduced the amendments to Article 3 and 5 of the aforementioned Directions on December 28, 2018. The amendments are as follows: (1) the declared interest rate shall not exceed the 24-month average rate of return on investment before the month of declaration plus 0.5% markup; (2) in the case that all segregated assets of a life insurance company are measured by fair values, the company may introduce a measure to enhance management of segregated asset accounts (such as a mechanism for maintenance of declared interest rate stability) after approval has been given by the competent authority. The amendments aim to facilitate sound operation of life insurance companies and maintain a reasonable and stable level of declared interest rate for protection of the policyholders’ rights and interests.
Visitor: 271   Update: 2019-02-20