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Amendments to the Directions for the Setting Aside of Foreign Exchange Valuation Reserve by Life Insurance Enterprises

In order to further strengthen the reserve requirements for foreign exchange valuation of life insurance companies, the FSC introduced the amendments to Article 3 of the aforementioned Directions on January 30, 2019. According to the amendment, when the hedging cost in the foreign exchange market exceeds 2%, a life insurance company is required to raise the monthly fixed setting ratio of reserve set aside for foreign exchange valuation from 0.05% to 0.06% and raise both the monthly additional reserve setting ratio and the monthly additional offsetting ratio from 50% to 60%.
Visitor: 517   Update: 2019-03-06