SHANGHAI (Reuters) - China’s insurance regulator has asked insurers to make improvements to their risk assessment processes and emergency backstops, the latest in a slew of measures taken to tackle weaknesses in the country’s financial system.
In a notice published on its website on Sunday, the China Insurance Regulatory Commission (CIRC) ordered insurance firms to improve the systems in place that manage liquidity risk such as emergency control methods.
The notice said insurers must have systems in place to protect against risks that arise from the use of funds. Such measures include improving internal compliance and developing long-term sound asset allocation strategies.
Since the beginning of this year, the country’s regulators have issued a flurry of new regulations and checks, taking aim at everything from malpractice to levels of leverage among finance firms.
On Thursday, the CIRC called on insurance companies to strengthen supervision of operations and investment activities and correct market disorder.
Reporting by Engen Tham; Editing by Sam Holmes