China orders life insurers to tighten reporting standardsJune 14 2018 by InsuranceAsia News Staff
Life insurers in China now need to tighten management of their liabilities, create a reporting system to cover asset and liability terms, and strengthen cash flow, based on the new regulatory rules.
The tightened reporting standard was ordered by China’s banking and insurance regulator as part of efforts to improve supervision and risk control in the country’s financial sector.
Aside from the tightened reporting, the China Banking and Insurance Regulatory Commission (CBIRC) also issued rules for punishment of life insurers firms with a serious mismatch of liabilities and assets, insufficient reserves, and those who exhibit a major liquidity risk.
In its latest orders, the CBIRC has expressed concern that the sudden withdrawal of funds from such short-term universal life products could have an impact on insurer cash flow.
- June 22
The central bank has warned of a corresponding drop in the solvency ratio of many insurers.
- April 23
A rise in interest rates and dividend payouts took its toll on available capital in the fourth quarter of last year.
- March 29
The Taiwanese life insurance company is set to take up the forfeited options of Hyundai Mobis.
- March 16
The companies failed to meet capital requirements set in the country's insurance code since 2016.