The new chairman of the Financial Supervisory Commission is confirmed to be appointed by the National Chengchi UniversityInsuranceDepartment Professor Peng Jinlong was appointed as the new team. The news broke out on social media early in the morning, and the discussion was extremely heated. This financial personnel case has also become a highlight of the new team. A senior financial insider analyzed that the chairman of the Financial Supervisory Committee needs to have the following qualifications: In terms of his profession, Peng Jinlong is indeed an expert in the insurance industry, and he is not very political.life insurance industryPeople clicked “like” one after another.
Senior officials in the financial circle said that Peng Jinlong has been studying insurance-related issues for a long time. It is at the critical moment when the life insurance industry is integrating with the two major international systems. The life insurance industry will be very turbulent in the next two to three years. Although Peng Jinlong is a scholar, he is very familiar with the practical issues of the life insurance industry. “He is not only a scholar who understands theory, but is also very down-to-earth.” Both blue and green people in the political arena speak highly of him.
Peng Jinlong once wrote an article in the “Experts’ Views” column of the Economic Daily on “Problems and Solutions for Life Insurance Industry Supervision Indicators”: The insurance industry originally only adopted the RBC ratio as a single capital adequacy standard. In May 2021, the insurance law was revised to include the unique capital adequacy standard.net worth ratio, and has since entered the era of dual capital supervision indicators. The RBC system has decided to go into history in 2026. In the future, a new generation of solvency standard (TW-ICS) will be developed to replace it with reference to the Insurance Capital Standard (ICS) set by the International Association of Insurance Supervisors (IAIS). However, the International Financial Reporting Reporting Standard No. 17 (IFRS 17), which is also in line in 2026, has a significant difference in the determination of the scope of liabilities from the ICS, which may lead to inconsistent or even contradictory results between the dual supervision indicators.
Peng Jinlong said that it is generally expected that the net value ratio of the life insurance industry will decline when it adopts IFRS 17. One of the main reasons is that the new standard stipulates that insurance contract liabilities will be estimated based on current interest rates. As a result, the interest spread losses hidden by operators in the past when they sold high-interest insurance policies must be A one-time reflection; secondly, when the new system calculates insurance contract liabilities, adding the Contract Service Margin (CSM) account will also reduce the net value. Therefore, when adapting to IFRS 17, whether the net worth ratio of each life insurance company can safely pass the test has always been the focus of attention from the outside world.
Although ICS’s concepts and methodologies on insurance liabilities are similar to IFRS 17, they have completely different views on the classification of CSM. IFRS 17 determines that CSM belongs to liabilities, but when ICS calculates the capital adequacy ratio, it is placed in owned capital. Originally, there was no problem with the two systems having different purposes and regulations. However, because of China’s unique dual-index capital supervision system, the net worth ratio calculated under IFRS 17 for the same CSM is different from the capital adequacy ratio calculated under ICS standards. , but have completely opposite classification standards. How to adjust when two new systems are applied at the same time in 2026 is worthy of attention!
He believes that according to the logic of ICS capital adequacy ratio calculation, the more CSM a life insurance company has, the higher the capital adequacy ratio will be, but the net worth ratio calculated based on the IFRS 17 financial report, under other conditions being the same, is that the higher the CSM ( The higher the debt, the lower the net worth. On the contrary, it will have a negative effect on capital adequacy. The two are obviously very different. Intuitively, the higher the CSM of an insurance company, the more products it sells with high potential profits in the future. In theory, it is better for future soundness. Moreover, ICS is a new technology developed by IAIS for many years and is specially developed for the insurance industry’s capital adequacy. Methodology is naturally much stronger than the net worth ratio that lacks support from academic theory and international practice.
Although the net worth ratio has the advantage of being simple and easy to understand, it has more disadvantages. It is indeed not suitable as a capital supervision indicator for the long-term and stable development of the industry. When TW-ICS is implemented in the future, the net worth ratio should go into history. After all, just one good indicator is enough. If we try our best to make the new generation of solvency standards conform to both academic theory and international practice, it should be enough!
Peng Jinlong, the new chairman of the Financial Supervisory Commission, has a sneak peek at his suggestions on life insurance “supervision issues”!
The new chairman of the Financial Supervisory Commission has been confirmed to be Peng Jinlong, a professor from the Insurance Department of National Chengchi University. The news broke out on social media early in the morning, and the discussion was extremely heated. This financial and economic personnel case has also become a major issue for the new team…
2024-04-16 11:36
Gold, silver, Bitcoin hit new highs, Japanese yen exchange rate hit new lows Xie Jinhe: Looking for new directions for capital hedging
Xie Jinhe, chairman of Caixin Media, pointed out on Facebook today that the price of gold has recently reached a new high, and silver and Bitcoin have reached new high prices; the rise in the exchange rate of the US dollar has led to the depreciation of Asian currencies, and the Japanese yen…
2024-04-16 11:20
20 years ago, Wei Baosheng, the chairman of Xinshou, who fell in love with Peng Jinlong and revealed this secret
Peng Jinlong was selected as the chairman of the Financial Supervisory Commission at the last moment, and he can be called a dark horse. Although he has no practical experience in the life insurance industry management team, he has served as a number of medium and large life insurance companies…
2024-04-16 12:04
The super-aged society is coming. Taishin Bank launches NT$1,680 subscription for pre-opened trusts
Taiwan will enter a super-aged society in 2025. Facing the tsunami of senior citizens, Taishin Bank has launched a “pre-opened trust” with flexibly adjustable amounts and terms. The initial fee is only NT$…
2024-04-16 13:27
Guo Zhihui becomes manager and resigns from all positions related to Chongyue Group
On the 16th, quasi-Executive President Zhuo Rongtai announced the appointment of Guo Zhihui, chairman of Chongyue Group, as Minister of Economic Affairs. Chongyue released a news report stating that Guo Zhihui said that with 40 years of industry experience…
2024-04-16 12:59
Domestic insurance is different from international insurance. Peng Jinlong looks at IFRS17 and believes that it is a reference and not a mandatory integration.
In 2026, the insurance industry will implement both the international financial reporting standard IFRS17 and the new generation solvency system, which is a big event for the insurance industry. Compared with the current chairman of the Financial Supervisory Commission, Huang…
2024-04-16 12:43
0 messages in total
- When posting articles or placing tags, you must not make any remarks that are illegal or infringe upon the rights of others. Violators shall bear legal responsibility.
- For comments that are knowingly untrue or excessively emotional and abusive, if reported by netizens or discovered by this website, Lianhe News Network has the right to delete the article, suspend or terminate the membership. If you do not agree with the above rules, please do not post articles.
- For tags that are meaningless, irrelevant to this article, knowingly untrue, or abusive, Lianhe News Network reserves the right to delete tags, suspend or cancel membership. If you do not agree with the above regulations, please do not place tags.
- If the “nickname” involves swearing, swearing, or infringing on the rights of others, Lianhe News Network has the right to delete the article, suspend or cancel the membership. If you do not agree with the above rules, please do not post articles.
More
