CIRC to strengthen standardsJune 8 2017 by InsuranceAsia News Staff
China’s insurance watchdog will implement a spate of more stringent measures on the management of liability, investment and liquidity risks.
These stricter controls will be made as the China Insurance Regulatory Commission (CIRC) assesses solvency requirements for the second year, according to a PricewaterhouseCoopers (PwC) report.
PwC China financial services consulting partner Jimi Zhou said the commission is now focusing on asset and liability management coupled with moves on financial deregulation in an attempt to mitigate risks in banking, securities, insurance, and asset management sectors.
More scrutiny will be placed on investment risks due to the increased volatility in stock and alternative investment markets.
According to Zhou, CIRC will put more emphasis on the actual implementation of risk control measures instead of establishing a management framework similar to what it did in the first year of implementing the Solvency Aligned Risk Management Requirement and Assessment.
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