On Sep. 12, TAI FSC lowered risk factor for investing in infrastructure.
TAI FSC lowered the risk factor for insurance companies investing in public infrastructure through domestic private equity funds, from 10.18% to 1.28%.
Follows TAI FSC Dec. 2023 capital adequacy for the insurance industry, see #177395.
Public Infrastructure Investment
Aligns with the Executive Yuan's Trillion-dollar National Infrastructure Investment Plan to promote domestic public infrastructure investment by the insurance industry.
The reduced risk factor applies to both direct investments and investments through private equity funds, with 100% allocation in domestic public infrastructure.
The change is set out in the 2024Scope and formula for calculating total adjusted net capital and risk based capital of insurance companies, effective from Jan. 1, 2025.
TAI FSC will develop a risk factor control mechanism; once the insurance industry's total investment reaches NTD 500bn, an additional risk-based factor will be applied.
In Oct. 2024, TAI FSC said it will adjust risk based capital calculation, see #228959.
Dec. 2024 Investment Via Venture Capital
On Dec. 10, 2024, TAI FSC lowered the risk factor for insurance industry's 100% investment in public construction through domestic venture capital enterprises.
Risk factor will be lowered from 10.18% to 1.28%, reference to private equity funds.
