HK insurance regulator stands firm on capital ratios

Hong Kong’s insurance regulator has stressed it is not about to lower capital requirements for firms in the industry despite the threat they will not be able to match their long-term liabilities. Insurance commissioner Annie Choi acknowledges that a prolonged low interest-rate environment would impact the asset valuations of insurers, whose portfolios are typically bond-heavy as they seek stable returns. “When interest rates are low, the capital requirement is higher as it is ba…