TAIPEI, July 16 (Reuters) - Taiwan’s financial regulator is studying whether to allow local insurance firms to invest more of their capital in risk assets to keep up with rivals elsewhere in Asia, the Commercial Times reported on Wednesday.
It said the Financial Supervisory Commission (FSC) has instructed an insurance group to study the possibility of raising insurers’ risk-based capital (RBC), a move that could pour hundreds of billions of Taiwan dollars into local stock and property markets.
Such a step would also help Taiwan insurers to be better positioned when they look for acquisitions overseas, it said.
FSC oficials were not immediately available for comment.
The planned change of RBC rules was expected to be implemented by end of this year, the paper said.
Reporting by Faith Hung