Newsletter
RBC SYSTEM IMPLEMENTED ON 9 JULY
The MOF Department of Insurance recently stated that the calculation of capital adequacy under the risk-based capital system is to be based on the equity capital and risk capital figures from insurers' year-end financial statements. Al-though the RBC system came into force on 9 July 2003, in fact insurers will not need to report their capital adequacy status in their financial and operating reports for 2003 until April 2004. Thus insurers still have almost six months to adjust their capital allocation and operating strategies.