Fitch Ratings’ Mr Jeffrey Liew believes believes the prompt response by most insurance regulators across the APAC region will help insurers weather some of their key business risks during the coronavirus crisis. Capitalisation, earnings and liquidity positions of some insurers could come under pressure from the financial-market disruption and economic strain caused by the pandemic.
Insurance regulators in most APAC countries have introduced measures to safeguard policyholder interests while ensuring industry resiliency. Most relate to policyholder protection, capital preservation and business continuity, supervisory relief to reduce the administrative burden on insurers and improvements to risk management, among other areas.
Regulations to preserve capital strength and risk management
The capital-management measures introduced by some APAC regulators and the increasing commitment by regulators and insurers to strengthen risk-management practices will position insurers favourably to counter evolving risks posed by the pandemic.
Insurers in Australia and Singapore were asked by regulators to adopt a prudent and forward-looking approach to managing capital while…
