(1) Reasons for Proposal

There is a need to upgrade the reinsurance regulation system and refine the reinsurance supervision system by referring to global standards.

Since the abolition of the Standards of Practice for Reinsurance Management, a number of issues have arisen including the occurence of blind spots in supervision and lack of compliance with the international supervision system.

The IMF-World Bank Financial Sector Assessment Program (FSAP, scheduled for 2019) is expected to assess whether to enact the recommendations of international organizations, for which it is necessary to prepare appropriately.

In response, the Amendment prescribes grounds for which to introduce reinsurance control standards under the Regulations on the Supervision of the Insurance Business, and prescribes specific procedures and standards under the Detailed Enforcement Regulations for Insurance Business Supervision.

(2) Major Provisions

Prescribe specific procedures and details concerning the establishment and operation of reinsurance control standards and internal control systems

- Formulate and operate reinsurance risk strategies such as ceding/reinsurance plans, risk management, liquidity management, etc., in accordance with an underwriting risk assessment

- Establish and operate reinsurance-related information management systems and internal control systems, etc.