Insight
Report Insurance Governance, Risk and Compliance in Asia-Pacific: Order report by calling marketreportsstore.com
at +1 888 391 5441 OR send an email on sales@marketreportsstore.com with Insight Report Insurance Governance, Risk and
Compliance in Asia-Pacific in subject
line and your contact details.
Synopsis
The report
provides insights into the governance, risk and compliance framework in the
Asia-Pacific region:
- It provides an overview of the insurance regulatory framework in various Asia-Pacific countries.
- It describes key factors driving changes in the GRC framework in the Asia-Pacific region.
- It provides insights into key GRC parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, and solvency requirements.
- It outlines escribes emerging trends and developments shaping the GRC framework in the Asia-Pacific region.
Summary
- As the insurance markets in the countries of the European Union work towards achieving greater transparency, enhanced ability in identifying exposure to risk, greater process efficiency and control (by adopting Solvency II standards) and other governance, risk and compliance (GRC) initiatives, many countries of the Asia-Pacific region are also following suit. The Asia-Pacific region comprises diverse economies with significantly varying GRC frameworks governing the respective insurance industries. The region consists of economies with highly developed and complex regulatory environments, and those with only basic regulatory standards. The pace of regulatory developments and changes has increased in the Asia-Pacific region in recent times, as insurance regulators are focusing on enhancing their GRC frameworks.
Continued…
·
After the global
financial crisis, insurance regulators in Europe and America markets are
strengthening their GRC frameworks with specific focus on prudential standards
and consumer protection standards. Key initiatives in this area include the
implementation of Solvency II in Europe region, and the adoption of risk-based
solvency frameworks and IFRS standards by many countries. These developments
have influenced Asia-Pacific insurance regulators to enhance their own GRC
frameworks to keep pace with international trends.
·
International and
regional organizations, including the International Association of Insurance
Supervisors (IAIS), International Monetary Fund (IMF), Financial Stability
Board (FSB) and Asian Development Bank (ADB), promote the adoption of international
best practices across insurance industries. Insurance regulators receive help
from such organizations in developing and enhancing GRC frameworks and
implementing new standards in line with the international best practices.
·
Most countries in
the Asia-Pacific region are strengthening their solvency frameworks and
consumer protection standards. Countries which have already implemented
risk-based capital adequacy standards, such as Australia and Singapore, are
enhancing their standards by incorporating internal models for risk assessment,
enterprise risk management standards, new public disclosure requirements and
additional risks for solvency margin calculation. Other countries which have a
factor-based solvency margin framework, such as China, Hong Kong and Sri Lanka,
are moving towards adopting risk-based capital adequacy standards.
Continued…
·
Insurance
regulators are strengthening consumer-protection standards to boost consumer
confidence and promote growth in the Asia-Pacific insurance industry. Insurance
regulators in the Asia-Pacific region are implementing new regulatory standards
for the protection of policyholders' data collected by insurance organizations
for various purposes. Most regulators are educating customers by creating
awareness about various insurance products, and most countries have either
established, or are in the process of establishing, policyholders’ protection
funds in order to compensate policyholders in the case of insolvency of an
insurer.
·
In an effort to
standardize accounting standards across the world, the International Accounting
Standard Board is continuously developing the existing ones and releasing IFRS
standards. The IASB has published IFRS 9 standards which will be effective from
January 1, 2015, and is expected to publish IFRS 4 Phase II standards in 2015,
with an expected implementation date of January 1, 2018. Many Asia-Pacific
countries have already adopted IFRS standards, or are in the process of
converging their accounting standards with IFRS standards. Countries that have
already adopted or are adopting IFRS standards will be required to implement
these new ones.
·
Group-level
supervision is the next level of supervisory standards, which provides full
protection to the policyholders from any type of risk that may arise from the
parent company, or any of its subsidiaries, in a complex group structure. This
provides an immense challenge for the regulator, in terms of developing and
implementing a comprehensive group level supervision, and also for the
insurance group companies to comply with the new standards. Within the
Asia-Pacific region, Japan, Australia and China have adopted group level
supervision framework, which are in their nascent stage of development, while
Singapore is in the process of implementing – and Hong Kong considering the
implementation of – a group-level supervisory framework.
·
GRC frameworks
for insurance businesses are highly complex, and require expertise with
necessary skill sets and knowledge to understand and implement regulatory
standards. It takes years to develop and implement complex regulatory standards
specifically related to prudential matters, and implementation of new
regulatory standards requires a huge amount of time and expenditure over a
period of time. A lack of qualified resources is a major challenge for the
development and implementation of regulatory standards. Integrating and
complying with the ever-changing regulatory requirements with existing business
processes is a major challenge for insurance companies. The requirement of
additional investments to implement new regulatory standards puts immense
capital pressure on insurance companies that are financially not sound.
For more reports on Banking & Financial
Services Click Here
Contact sales@marketreportsstore.com /
Call +1 888 391 5441 for further information on “Insight Report Insurance
Governance, Risk and Compliance in Asia-Pacific”
report OR for any other market research and intelligence needs you may have for
your business.
