Asia Insurance Summer Series: A guide to Solvency Capital beyond all the Abbreviations

Research evidence excerpt

Asia Insurance Summer Series: A guide to Solvency Capital beyond all the Abbreviations

J P M O R G A N Asia Pacific Equity Research

14 July 2026

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Asia Insurance

Summer Series: A guide to Solvency Capital beyond all

the Abbreviations

The minimum capital requirement under a solvency framework represents the capital Insurance

ACan insurer must hold against its key risks. Risk-based capital (RBC) remains the core MW Kim

solvency framework across Asia, but the direction of travel is clearly towards a more (852) 2800-8517

economic assessment of capital. Traditional RBC regimes are practical and formula- mw.kim@jpmorgan.com

based. However, they have often relied on statutory or local accounting balance J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

sheets, creating a gap vs fair-value capital assessment. The adoption of IFRS-17/9 AC Matthew Hughart

since 2023 is narrowing this gap, while regulators are increasingly aligning local (852) 2800-6518

solvency regimes with Insurance Capital Standard, or ICS, principles. Korea has matthew.hughart@jpmorgan.com

already moved to K-ICS, while Taiwan and Japan adopted ICS-aligned frameworks J.P. Morgan Securities (Asia Pacific) Limited

in Jan-26 and Mar-26, respectively. At the same time, excess capital measured on an Jemmy S Huang AC

economic balance sheet basis, and the potential upside from capital returns to (886-2) 2725-9870

shareholders, could become a more investable sector theme.