In order to strengthen financial health of insurance companies and their capacity of taking all kinds of risks, the FSC amended the aforementioned Regulations on December 4, 2019, considering that the ratio of net worth to total amount of assets of an insurance company (“the net worth ratio”) can measure its market risk capacity better when dramatic and shortterm changes occur in international economic and political landscapes. In addition to the RBC ratio as the classification standard of capital adequacy ratios, a provision was added stipulating that if the net worth ratio of an insurance company is below 3% or 2%, it should be listed under the assessment standards of “capital inadequate” or “capital significantly inadequate”. In addition, the amendments also contain the definition of the net worth ratio. The new measures all of above will be effective on April 1, 2020.