Hong Kong RBC proposals could lead to inconsistency – Axa Asia CRO

Proposals diverge from market-based approach

Hong Kong map
Hong Kong: CRO claims new solvency rules mean some firms' capital calculations would be unrealistic

Hong Kong's proposed new solvency rules could lead to hidden inconsistencies in how firms calculate capital, according to Axa Asia's chief risk officer (CRO).

Mark Stamper, regional CRO and chief life actuary for the firm in Hong Kong, says companies would be given too much scope to decide their own valuation methodologies under the risk-based capital regime proposed last year.

"There could be some room for companies to interpret valuation methodologies in different ways and use company-specific