Risked-Based Capital (RBC) System
Risk-Based Capital (RBC) System has been implemented in Taiwan since July 9,
2003. The system provides an early detection of the soundness of insurance
enterprises’ financial conditions, hence enabling insurance enterprises to
enhance their capital structure and reach the goal of sustainable
operations. According to the Regulations Governing Capital Adequacy of
Insurance Companies, insurance enterprises must file RBC Ratio Report twice
a year to the competent authority. In principle, the competent authority
convenes annual review meetings with the Taiwan Insurance Institute and
other relevant organizations to ensure that RBC System is in line with
current market situation as well as international regulatory development.
Moreover, the competent authority has commissioned the Taiwan Insurance
Institute to form a research team to research and recommend research
findings for future reference. The competent authority would revise the RBC
system, if appropriate, based on the characteristics of products in Taiwan
market, overall financial market condition, and the financial soundness of
the entire insurance industry.
2003. The system provides an early detection of the soundness of insurance
enterprises’ financial conditions, hence enabling insurance enterprises to
enhance their capital structure and reach the goal of sustainable
operations. According to the Regulations Governing Capital Adequacy of
Insurance Companies, insurance enterprises must file RBC Ratio Report twice
a year to the competent authority. In principle, the competent authority
convenes annual review meetings with the Taiwan Insurance Institute and
other relevant organizations to ensure that RBC System is in line with
current market situation as well as international regulatory development.
Moreover, the competent authority has commissioned the Taiwan Insurance
Institute to form a research team to research and recommend research
findings for future reference. The competent authority would revise the RBC
system, if appropriate, based on the characteristics of products in Taiwan
market, overall financial market condition, and the financial soundness of
the entire insurance industry.
In addition to following global updates and closely monitoring the risks
that insurance enterprises are exposed to, the competent authority is
proactively and persistently observing the transformations of international
economics and the development of insurance regulatory trends, for examples,
the Insurance Capital Standard of IAIS and the capital requirements under
European Union’s Solvency II. These efforts are made to help determine the
directions for improvement and policy objectives. In line with “The Plan to
Integrate Taiwan’s Insurance Solvency Regulatory System with the
International Regulatory Standards,” researches on catastrophic risk-based
capital, adjusted net capital, risk review on overseas investments, and C3
interest rate risk will be conducted in the near future to ensure that the
practice of risk-based capital system in Taiwan is aligned to the
international insurance regulations.
that insurance enterprises are exposed to, the competent authority is
proactively and persistently observing the transformations of international
economics and the development of insurance regulatory trends, for examples,
the Insurance Capital Standard of IAIS and the capital requirements under
European Union’s Solvency II. These efforts are made to help determine the
directions for improvement and policy objectives. In line with “The Plan to
Integrate Taiwan’s Insurance Solvency Regulatory System with the
International Regulatory Standards,” researches on catastrophic risk-based
capital, adjusted net capital, risk review on overseas investments, and C3
interest rate risk will be conducted in the near future to ensure that the
practice of risk-based capital system in Taiwan is aligned to the
international insurance regulations.
For further information please refer to the website of the Insurance Bureau in Chinese version.
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Update：
2019-11-07