Newsletter
INSURANCE LAW AMENDMENTS
In early April, the Ministry of Finance (MOF) invited the ruling and opposition parties to take part in consultation on draft amendments to the Insurance Law. The draft put forward for dis-cussion included proposals to apply the principle of segregated accounts to investment products, to limit policyholders to persons over age 14 (in other words, to abolish children's policies), and to introduce a risk-based capital (RBC) control mechanism to replace the existing "admitted as-sets minus liabilities" requirement as the crite-rion for determining insurers' capital adequacy. There was a high degree of consensus on all these points. Because agreement has been reached on the main provisions, the MOF will press for completion of the third reading of the amendments during the current legislative ses-sion. We will continue to follow developments and keep readers informed.