Taiwan Insurers Seek $2.9 Billion Relief Through Accounting Changes
TL;DR
Taiwan's life insurers propose accounting changes to reduce hedging costs by $2.9 billion and smooth currency impacts. The plan includes profit contributions to reserves, potentially boosting sector capital by NT$1.3 trillion over 15 years.
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Taiwan's life insurers proposed changes to accounting rules that would cut hedging costs by NT$90 billion ($2.9 billion) and provide relief for excessive currency swings. The proposal would allow exchange rate fluctuations to be partially recognized over time, rather than having their full impact reflected immediately. Insurers would also contribute 5% of their pretax profits to strengthen foreign exchange volatility reserves. The measures could boost the insurance sector's capital and foreign currency reserves by about NT$1.3 trillion over 15 years.
