SHANGHAI, July 9 (Reuters) - Chinese insurers should strengthen disclosures on transactions in response to new investment strategies they have developed in a fast expanding market, the industry’s regulator said.
Insurers need to increase the scope and standard of disclosures and strengthen legal responsibility, the China Insurance Regulatory Commission said in a notice posted on its website on Friday.
Years of breakneck growth for China’s top insurers has been partly fuelled by a splurge on risky investment products that could punch multi-billion-dollar holes in their balance sheets if the slowing economy triggers heavy debt defaults, a Reuters survey of insurers’ accounts found in June.
“In recent years, as the insurance market has developed quickly, the avenues for different uses of funds have continuously expanded,” said the commission.
“The scale of related party transactions, information disclosures, and risk controls are all worthy of attention.” (Reporting by the Shanghai Newsroom; editing by John Stonestreet)