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Home / Insurance / China updates risk management rules for insurance groups

China updates risk management rules for insurance groups



(Reuters) – China's banking and insurance regulators on Tuesday issued new rules governing the risk management of insurance groups, which will intensify supervision, limit holdings of non-core entities and regulate their investments in other companies.

The move aims to limit the risks in the sector and drive insurance groups to focus on core business, strengthen their equity investment management … and curb disorderly capital expansion, "said China Banking and Insurance Regulatory Commission.

The rules were updated from a 2010 version to adapt to significant changes in both the development of insurance groups over the years and the external environment, CBIRC added in a statement on its website announcing the changes.

China has tightened the rules for its large and systemically important financial institutions, including banks and financial holding companies, in the last two years to improve risk management in its financial system.

The updated rules for insurance groups also aim to pave the way for regulation of the country's systemically important insurance companies, the CBIRC said in a separate statement also released on Tuesday.

China has 1

3 large insurance groups with a total assets of 22 trillion yuan ($ 3.45 trillion) under management by the end of 2020, which will dominate the insurance market, it said.


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