New foreign-exchange rules won’t end insurers’ risks, Taiwan Ratings saysSTRUCTURAL ISSUE: In a stress scenario in which the New Taiwan dollar appreciates 10 percent, some insurers could face renewed pressure, Taiwan Ratings saidBy Crystal Hsu / Staff reporterTaiwan’s new foreign-exchange accounting rules might help smooth life insurers’ earnings, but they would not eliminate the sector’s underlying currency risks, Taiwan Ratings Corp (中華信評) said yesterday. “We believe the new foreign-exchange accounting treatment would smooth earnings, but also introduce complexity,” Taiwan Ratings credit analyst Serene Hsieh (謝雅瑛) said. The Taiwan Ratings Corp logo is pictured outside the company’s office in Taipei on July 9, 2024. The new approach was expected to lead to more stable reported earnings, as larger reserves help cushion exchange-rate volatility. Taiwan Ratings said stress tests it conducted suggested that credit profiles across the industry could diverge more sharply during periods of economic volatility.

Source: Taipei Times April 07, 2026 20:13 UTC