The insurance industry across the Asia-Pacific region witnessed significant developments between March 31 and April 4, 2025. Notable updates include regulatory changes in Hong Kong, a major merger within MS&AD Insurance Group, and a leadership reshuffle at Prudential.
Hong Kong Insurance Authority Caps Illustration Rates
The Hong Kong Insurance Authority (HKIA) introduced new caps on the illustration rates for participating insurance policies. Effective July 1, the new regulations set a 6% cap on Hong Kong dollar-denominated policies and 6.5% for policies in foreign currencies.
The introduction of these caps has sparked confusion on social media, with some mistakenly claiming that the limits affect the actual returns of policies. However, the HKIA clarified that the caps apply only to the internal rate of return used in benefit illustrations at the point of sale and do not limit the dividends insurers can pay above these rates.
Myanmar Earthquake Highlights Insurance Gaps
In Myanmar, Howden Re issued a statement following a powerful earthquake along the Sagaing Fault, one of the region’s most active seismic zones. Andy Souter, Head of Asia Pacific at Howden Re, emphasized the disaster as a tragic event and pointed out the significant protection gap, calling for increased insurance capital in emerging markets.
The Sagaing Fault, stretching over 1,200 km, has seen multiple major earthquakes, including M7.3+ events in 1931 and 1946. Studies suggest the region is still at risk, with a potential M7.9 earthquake looming near the recent rupture site.
Taiwan’s Life Insurance Sector Faces Uncertainty
Taiwan’s life insurance sector is projected to experience continued volatility in 2025, driven by shifts in the components of operating surpluses, according to a report by Taiwan Ratings Corp. (TRC), a subsidiary of S&P Global Ratings. Interest surplus remains the primary driver of profitability, followed by mortality and loading surpluses.
Peak Re Receives Reinsurance License in India
Hong Kong-based Peak Reinsurance Company Limited (Peak Re) has received a reinsurance branch license from the International Financial Services Centres Authority (IFSCA) to operate as an IFSC Insurance Office (IIO) in India.
Generali Acquires Full Ownership of Generali China Insurance
Generali has completed the acquisition of full ownership of Generali China Insurance Company Limited (GCI), following the approval of all necessary regulatory requirements.
MS&AD Announces Subsidiary Merger
MS&AD Insurance Group Holdings revealed plans to merge two of its key non-life insurance subsidiaries, Mitsui Sumitomo Insurance Co., Ltd. and Aioi Nissay Dowa Insurance Co., Ltd. The merger, set for April 2027, aims to strengthen the group’s domestic non-life insurance operations and support its vision of becoming a world-leading insurance and financial entity.
Leadership Changes at Aon and Prudential
In leadership news, Aon plc appointed Soeren Soltysiak as its new Asia CEO of Reinsurance Solutions, effective April 1, 2025.
Meanwhile, Prudential plc announced the appointment of John Cai as Regional CEO for Malaysia, Indonesia, Vietnam, and Agency, effective April 7. Cai, based in Hong Kong, will report to Prudential’s CEO, Anil Wadhwani.
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