Two key components of the modernisation of the regulatory regime being carried out by the Hong Kong Insurance Authority (IA) are the introduction of a risk-based capital (RBC) solvency framework and greater focus on enterprise risk management (ERM). 

In March 2023, Milliman conducted a survey of 15 life and 10 general Hong Kong insurers to assess how insurers are implementing these two key components. This e-Alert presents a summary of our findings, divided into the following themes:

• Target capital
• RBC stress testing
• RBC production
• Embedding RBC
• Embedding ERM