Taiwan Insurers Seek $2.9 Billion Relief Through Accounting Changes

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.