Fitch Ratings has forecast significant regulatory changes in the insurance sector, driven primarily by shifting capital requirements.
The firm notes that key areas of focus will include the implementation of the global Insurance Capital Standard, the establishment of resolution regimes, and the incorporation of climate and environmental risks into solvency frameworks.
As part of these developments, Fitch has published an updated version of its Global Insurance Regulatory Field Guide, which details the regulatory requirements across 16 major emerging and developed markets.
The guide emphasizes factors that influence Insurer Financial Strength ratings, as well as ratings for debt and hybrid instruments issued by (re)insurers. It covers crucial regulatory components such as valuation principles, qualifying capital, internal model use, solvency-ratio triggers, and governance standards.
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