CBIRC Clarifies the Extension of the Term of the Reinsurance Credit Risk Factor Program Applicable...
On August 5, the CBIRC issued the "Extension of the Period of Application of Reinsurance Credit Risk Factors during the Transitional Period of the Framework Agreement on Solvency Supervision Equivalence for Hong Kong Region". The term of the reinsurance credit risk factor program applicable to qualified reinsurance institutions in Hong Kong during the transition period when they are subdivided into the business of mainland direct insurance companies was explicitly extended to June 30, 2022.
In May 2017, the former CIRC and the former OCI signed the Framework Agreement on the Conduct of Equivalence Assessment of the Solvency Supervision System (hereinafter referred to as the Framework Agreement), marking the official launch of the Solvency Supervision Equivalence Assessment by both parties. The Framework Agreement commits to grant mutual regulatory facilitation policies during the transition period of mutual recognition of equivalence, which ends in May 2025. In June 2018, the CBIRC issued "Question and Answer No. 1", granting a one-year transitional regulatory facilitation policy in respect of solvency credit risk in Hong Kong; in June 2019 and June 2020, the CBIRC issued two amendment notices to extend the policy application period by one year. This amendment is the third time that CBIRC has extended the application period of the policy.
The CBIRC will continue to cooperate with the Hong Kong Insurance Authority on solvency supervision, further strengthen cross-regional risk prevention, firmly support the development of Hong Kong's international financial center and maintain the long-term economic and financial stability and prosperity of Hong Kong.
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