Countries in the Asia-Pacific region are strengthening their solvency regulations, which is pushing insurers to improve enterprise risk management, according to Aon Benfield.

Europe’s Solvency II regime has greatly influenced other markets, with China and Hong Kong following that structure, it says in a report on solvency regulation.

China, Hong Kong and Sri Lanka are moving towards risk-based capital standards, while developed markets are beefing up current standards.

Aon says as new capital flows into the region, companies must understand future regulatory changes.