First feedback from Asian markets
Japanese and South Corean market interest in risk based capital concepts is high.
Tokyo and Seoul are just around the corner! Not geographically, but in respect of watching European trends in upcoming Solvency II requirements. Recently, Margarita von Tautphoeus, Head of Solvency Consulting at Munich Re, spoke at market seminars in Japan and South Corea respectively.
The feedback clearly highlights the increasing convergence of regulatory approaches: There is strong interest in tool know-how and methods, especially in developing full or partial internal models, implementing them into day-to-day business steering practise, enterprise risk management techniques and practical experiences from the QIS studies carried out in Europe.
While Japanese insurers expect that their regulation will shift from a risk based capital approach towards a solution inspired by Solvency II, Corean regulators will, as a first step, introduce a risk based capital system as from April 2009.
