Life insurers’ cap to rise in steps: FSCEASY DOES IT: The FSC does not approve of a sudden increase of 10 percentage points in the cap, as even a change of 1 percentage point can affect the marketBy Kao Shih-ching / Staff reporterThe Financial Supervisory Commission (FSC) yesterday said that it is considering raising the cap on sales of insurance policies denominated in foreign currencies from 35 to 40 percent, which would allow life insurers an additional NT$690 billion (US$24.36 billion) of overseas investment. However, a recent proposal by the Life Insurance Association prompted the commission to review its regulations, Shih said. If life insurers are allowed to sell more policies denominated in foreign currencies, they must inform policyholders of the foreign-exchange risks, she added. However, FSC Chairman Thomas Huang (黃天牧) said that he would not in the short term consider relaxing the 45 percent cap on total overseas investments that life insurance companies must follow. “Life insurers still have demand to put their money overseas, but the demand is expected to be lower than before, as growth of first-year premiums has slowed,” Huang said.

Source: Taipei Times February 18, 2021 15:56 UTC