• TAI FSC proposed amendments to regulations governing foreign investments by insurance companies, regarding relaxation of foreign currency insurance policy limits.

Amendments

• In the formula for calculating foreign investment quotas, reserves for non-investment personal insurance in the insurance industry will be increased from 35% to 40%.
• In line with amendments on Sukuk rules, deduct the total amount of foreign currency policy reserves invested in Sukuk from the calculation formula.
• Consequential changes relating to increase in reserves for non-investment personal insurance, will be made to incentive standards and contents of the application form.
• Insurance firms should provide exchange rate risk brochures when making sales, and include highest, average and lowest exchange rate scenarios in the last 10 years.
• Sales agents must participate in a one-hour forex risk training course every year.

Effectiveness

• Consultation paper will be released soon; consultation will last 60 days from then.