A Study on Risk-based Capital for Foreign Investment by the Insurance Industry

• Main Authors: Hsu, Wei Hsun, 徐偉勳
• Other Authors: Shiue, Min-Jeng
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/27219613426438318641

碩士 === 國立臺北大學 === 會計學系 === 102 === The proportion of foreign investment by the insurance industry in Taiwan has been increasing yearly, and regulators in charge continuously increase the fund operation efficiency and channels of fund utilization. Therefore, how to effectively monitor the foreign investment made by insurance industry has become increasingly important. This research plans to explore the nature of risk involved when insurance companies in our country invest overseas, how our current system of risk-based capital captures such risks and the related rules and regulations of other countries regarding foreign investment risks. The main purpose is to understand more clearly the risk profiles faced by insurance companies when they invest overseas and to come up with methods of risk measurement, i.e., using sovereign rating to provide regulator in charge and insurance companies with risk categorization for the reference needs of insurance monitoring or internal risk management of the company. Results show that sovereign rating is significantly related to the stock index of a particular country, which is in line with our research hypothesis.