South Korea's Insurance Research Institute Proposes Solvency System Reforms on July 9

According to the Insurance Research Institute's seminar held on July 9, researchers proposed policy reforms to improve South Korea's insurance solvency system. The institute argued that insurers, as long-term capital providers with patient capital, have advantages in funding advanced, venture, and infrastructure projects, but productive assets carry higher risks that increase capital volatility and reduce solvency ratios.

Proposed reforms include allowing matching adjustments for floating-rate assets, enabling government subsidy proportions to reduce impact levels for policy program investments, and expanding long-term stock exemptions to include unlisted stocks and funds. The institute also recommended applying developed-market valuation standards to qualified venture investments and recognizing renewable energy and AI infrastructure as eligible investment targets.