The RBC 2 regime is being formulated in line with the terms of the ICP17 (Insurance Core Principles) Capital Adequacy standards. "The more robust rules will increase confidence around the financial strength of the sector, but several challenges lie ahead, in particular for medium and small players that will need to cope with potentially more stringent capital requirements," said Mr. Jeffrey Liew, Head of Fitch's Asia-Pacific Insurance ratings group, at an industry briefing organised by Fitch Ratings (Thailand) Limited in Bangkok today.
Mr. Liew also discussed Fitch's insurance rating methodology and Prism factor-based model (Prism FBM) used in assessing the financial strength of life and non-life insurers across the Asia-Pacific region. Underwriting, investment and capital assessments are among the many fundamental building blocks of the agency's Insurance Financial Strength (IFS) rating approach.
Fitch's briefing also included an opening keynote speech by Mr. Chuchatr Pramoolpol, Deputy Secretary-General, Office of Insurance Commission, who outlined the outlook for Thailand's regulatory framework and the changes in investment and solvency rules. The event also featured Mr. Julien Godart, Senior Manager and ASEAN Technology Lead, Accenture Consulting Singapore, who discussed the use of big data and analytics for the insurance industry to tackle fraud and improve regulatory compliance. More than 80 participants from the regulatory, insurance and financial sectors attended the event.