China sets new capital requirements for firms

February 3 2016 by InsuranceAsia News Staff

From this quarter, insurance companies in China will have to comply with the new capital and risk regime policies set by regulators, the China Risk Oriented Solvency System (C-ROSS), which has now been officially implemented.

The system was launched to ensure rational growth of the country’s insurance industry, and sets new requirements and calculation models for capital adequacy and solvency capability of insurers.

Under the new system, insurance companies are also required to submit their solvency reports every three months.

The China Insurance Regulatory Commission issued 17 regulations regarding C-ROSS last February, and in June they requested that all insurance companies carry out self-assessments on solvency risk management, in preparation for this year’s implementation of the regulations.