China insurers’ solvency remains at a healthy levelMay 25 2017 by InsuranceAsia News Staff
Chinese firms continues to post a positive solvency ratio, reflecting efforts to keep risks within control, the country’s insurance regulator announced.
According to the China Insurance Regulatory Commission (CIRC), the insurance sector’s comprehensive solvency adequacy ratio was at 238% as of end of the first quarter.
The ratio is well beyond 100%, which is what the regulator requires.
CIRC also reported that the industry’s core solvency adequacy ratio stood at 221%, also well above the 50% requirement and indicating that there is enough core capital among players to allow them to meet their obligations.
Although the industry watchdog considers the risks manageable, it nonetheless said some risks should not be underestimated.
The country’s financial regulators have recently imposed more stringent supervision and stiffer penalties against erring companies and officials as they look for ways to promote efficiency and address industry shortcomings.
- December 11
The country's regulator announced the decision earlier this week.
- December 9
The announcement speeds up the opening of the market.
- December 4
Insurers in the Special Administrative Region saw a 883% upward profit swing for P&C business.
- November 25
A reorganisation of its international arm is aiming to streamline decision making.