Insurers applying for transitional measures are likely to adjust how they operate.
Fitch Ratings said that Hong Kong insurers are expected to keep strong capital positions under the new Hong Kong Financial Reporting Standard 17 (HKFRS17) and the Hong Kong Risk-Based Capital (HKRBC) regime. They will do this by changing their product portfolios and improving investment strategies.
HKFRS17 started in January 2023, and the HKRBC regime began in July 2024.
Both rules use an economic approach to measure assets and liabilities. This affects insurers’ business choices, capital plans, and how they manage investments.
The Hong Kong Insurance Authority has given insurers up to three years, until June 30, 2027, to fully follow the HKRBC rules.
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