HONG KONG, Dec 15 (Bernama-BUSINESS WIRE) — The recent easing of discount rate regulations by South Korea’s financial authorities will alleviate pressure on the solvency position of the country’s non-life insurers, according to a new AM Best commentary.
South Korea’s non-life insurers are facing increasing solvency pressures due to declining market interest rates, along with the tightening of the discount rate calculation for insurance liabilities by its domestic regulators. However, a recently announced plan is expected to slow the pace of these cuts taking effect, which should ease the burden that insurers would face in securing their solvency positions, according to the report.