Kathmandu. Regulators around the world are adopting growth-friendly rules for insurance companies.
Fitch Ratings found this in its latest global regulatory update from April to September 2025. “Regulators in Asia Pacific, Europe, the Middle East and Africa (EMEA) are taking further growth-friendly measures for the insurance sector,” Fitch said.
Regulators in China have announced a 10% cut in capital fees for equity investments to encourage greater participation of insurance companies in corporate financing.
Australia is offering lower capital requirements for insurance companies looking to improve their asset liability adjustments. This change is expected to make annuity products more competitive.
At the same time, the UK is trying to encourage innovation and market expansion by improving its risk change framework for the London market. However, both the US and the UK have expressed concern over the increasing use of reinsurance treaties funded in life insurance.
The U.S. has introduced an asset adequacy test to ensure proper cash flow matching. However, the UK has indicated that it may tighten oversight of such arrangements.
In Europe, the European Commission has proposed a reduction in capital charges for some long-term equity investments and senior tranches of securities. The move is aimed at encouraging insurance companies to invest more in the corporate sector to boost economic growth.
