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The Insurance Companies (Determination of Long Term Liabilities) Regulation 1995 which codifies sound actuarial principles will provide a guide to the actuaries in their calculation of the liabilities of the insurers.
"The provisions of the two Regulations are basically similar to those contained in the relevant sections of the Insurance Companies Regulations 1994 of the UK for life insurance business with minor modifications," the spokesman said.
"As Hong Kong's legislative framework on insurance business is largely modelled upon the UK system, it is considered that the UK standard, which is well tried out and of international standing, is the most suitable for adoption by Hong Kong," he added.
There will be a transitional period of three years to phase in the new solvency margin for insurers to allow more time for them fully comply with requirements. Individual insurers who are unable to meet the full solvency margin within the transitional period are required to submit, for the Insurance Authority's approval, a plan or a short term financial scheme to rectify the position.
End/Thursday, July 20, 1995
Value of manufacturers' orders-on-hand in May 1995
The value of manufacturers' orders-on-hand for local production in May 1995 increased by 8% over a year earlier, according to the provisional results of a monthly survey released today (Thursday) by the Census and Statistics Department.
Comparing May 1995 with May 1994, a significant increase in the value of outstanding orders was recorded in the electronic products industry (+28%).
Increases in the value of orders were also recorded in the electrical products industry (+17%), the printing and publishing industry (+13%) and the wearing apparel industry (+3%).
On the other hand, a significant decrease in the value of orders was registered in the plastic products industry (-20%). Decreases in the value of orders were also recorded in the fabricated metal products industry (-14%) and the textiles industry (-12%).