Officers are seen contained in the Monetary Companies Fee on the Authorities Complicated Seoul, Dec. 2, 2019. Korea Occasions file
Korea’s monetary regulator mentioned Wednesday it plans to ease capital adequacy necessities for insurance coverage firms to assist reduce their burdens and lift the standard of their capital base.
The Monetary Companies Fee is in search of to decrease the so-called capital adequacy ratio underneath the Korean Insurance coverage Capital Customary (Ok-ICS) to between 130 % and 140 %.
Since 2001, insurance coverage firms right here have been suggested to keep up their capital adequacy ratio at above 150 %.
The ratio refers back to the quantity of obtainable capital in contrast with required funds and signifies a monetary agency’s monetary soundness. By rules, they’re required to maintain the ratio above one hundred pc.
In 2023, the regulator launched the Ok-ICS, underneath which insurers have been in a rush to boost capital to fulfill required funds, which in flip elevated their monetary prices.
The typical capital adequacy ratio of insurance coverage corporations had stood at 218.3 % as of end-September. (Yonhap)
