The CIRC has said that there will be tougher supervision over shareholding changes of insurers and that insurance regulators at all levels should shore up weak parts of their supervisory work to build a strict and effective supervisory framework.
In a statement released on Sunday, the CIRC said once again that it will toughen supervision of the insurance industry to guard against financial risks. This was the latest in a string of statements from the insurance regulator about improving supervision since 9 April when Xiang Junbo was announced to have been placed under investigation for serious disciplinary violations. He has since stripped of his position as CIRC Chairman.
The statement pointed out that there are some loopholes in the current insurance supervision, which have given rise to risky practices in recent years such as aggressive buying of stakes in listed companies and unchecked growth of risky business.
Insurers with risky business expansion will be targeted for closer scrutiny. CIRC will also closely monitor where insurance funds are invested. The bar for overseas investments by insurance funds will be raised, it added.
In February, in its crackdown on risky activities by insurers, the CIRC barred Yao Zhenhua, Chairman of Qianhai Life Insurance, from the insurance sector for 10 years for irregular market operations.