Tuesday, May 22, 2018

Chinese crackdown on insurers intensifies

The Chinese regulator has intensified its regulatory checks on insurance companies. This week, the China Insurance Regulatory Commission (CIRC) issued an action plan to resolve major risks in the industry.

The agency, which released the action plan on its website, aims to stiffen regulation of insurers’ shareholders, as well as to take action against poor corporate governance and risky capital management and investment.

Under the plan, the CIRC has set a three-year period to achieve the tasks.

Part of the programme includes preventing systemic risk, cracking down on illegal businesses and taking more effective measures against foreign insurers that fail to meet solvency requirements and to address long-delayed problems.

China has been intensifying efforts to curb — if not eliminate — systemic financial risks after the central authorities made it a top priority during the Central Economic Work Conference held in December last year.

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