China's insurance regulator calls for greater 'self-discipline'

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China's insurance regulator has urged the industry to show greater "self-discipline" and serve the real economy, in a nod to the central government's focus on fighting financial risks.

In a speech published on the China Insurance Regulatory Commission's (CIRC) website on Saturday, vice-chairman Liang Tao said the insurance industry should "return to its origins" and work to "reduce tremors" in the economy and society.

The comments follow a turbulent few months in the insurance sector and a call last week from President Xi Jinping for the banking, insurance and securities regulators to show more accountability.

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China's insurance regulator has been moving aggressively since the start of the year, issuing new regulations and fines against companies to plug loopholes and tighten supervision.

CIRC has been particularly focused on the widespread issuance of higher yielding, short-term products by some insurers, and the potential systemic risk stemming from their use.

In recent years, some insurers have been deeply involved in the stock market, using massive fund from issuance of high-yield, short-term universal life insurance and other investment products.

The CIRC's top post has been vacant since April, when former chairman Xiang Junbo was put under investigation for suspected "serious disciplinary violations".

(Source: Reuters)

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