Japanese life insurers need to rethink equity assets under new regime
With a new regulatory regime in the making, the lifers’ relatively high allocation to domestic equity will incur a higher cost, and selling off can be either boom or bust.
Japanese life insurers are facing a new economic value-based solvency regime in 2025, and one of the major issues leading up to this change is their relatively large investments in domestic equities.
Teruki Morinaga, Fitch Ratings
With the new regulatory regime, the risk charge for equity may become harsher. The detailed calculations have not been disclosed, but the regime is expected to be heavily inspired by EU’s Solvency II directive, where the risk charges for equity i…
Please sign in or register
for free access to 1 article per month from AsianInvestor’s content and archives of over 16,000 articles.
¬ Haymarket Media Limited. All rights reserved.