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10:01, 02-Mar-2018
China's insurance regulator tests new asset liability management rules
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China's insurance regulator released new regulations on Thursday for asset liability management in the sector, deciding to test the new rules for one year in a latest step to prevent asset-liability mismatch risks.
The regulations include supervising standards for work procedures, performance assessment, asset-liability conditions as well as management reports, according to China Insurance Regulatory Commission (CIRC).
China Insurance Regulatory Commission in Beijing /VCG Photo
China Insurance Regulatory Commission in Beijing /VCG Photo
During the trial period, insurance companies are required to formulate asset-liability management reports and submit to the regulator within a month following each quarter.
After the regulations are officially launched, the regulator said it will categorize the insurance companies into four groups and take differentiated policies for them.
The move was the latest by China to improve the regulation of the insurance sector and prevent financial risks.
In January, the CIRC made new rules to step up scrutiny of outbound investment by insurance funds and ban insurance firm shareholders from interfering in fund operations.
Official data showed by the end of 2017, the industry had combined assets totaling 16.8 trillion yuan (about 2.7 trillion US dollars), up 10.8 percent from the beginning of the year.
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Source(s): Xinhua News Agency