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China vows greater scrutiny of insurers in risk crackdown
April 23, 2017 / 8:03 AM / 7 months ago

China vows greater scrutiny of insurers in risk crackdown

BEIJING, April 23 (Reuters) - China’s insurance regulator said on Sunday it will ramp up its supervision of insurance companies to make sure they comply with tighter risk controls and threatened to investigate executives who flout rules aimed at rooting out risk-taking.

The China Insurance Regulatory Commission said in a notice on its website it had told companies to strengthen controls in 10 areas, including liquidity risk and capital management, and implement 39 measures to stamp out risky investments and behaviour.

It did not specify what those 39 requirements are.

The statement is another show of resolve by Beijing in its latest efforts to tackle risk in the financial system in the world’s second-largest economy. On Thursday, the regulator called on insurers to strengthen supervision of investment activity and correct market disorder.

Some insurers have taken sizeable stakes in market-listed companies in recent years, often funded by the issuance of high-yield, short-term universal life insurance and other investment products. (Reporting by Josephine Mason and Yawen Chen; Eding by Paul Tait)

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