The entire insurance sector will place risk control in a more important position, the Chinese insurance regulator has said as it vows once again to strengthen supervision to fend off financial risk and push reform in the sector.
Mr Chen Wenhui, Vice Chairman of the CIRC said this when addressing a two-day internal meeting that ended last Saturday, reported the Xinhua News Agency.
"Actions will be taken to crack down on serious violations, dissolve hidden risk points and improve the long-term mechanism to hold the bottom line that there would be no systemic risks," Mr Chen said.
Highlighting stability and financial security, he reiterated that insurance would in no way become the financing and investment tool of big shareholders and he pledged to introduce policies to ensure the healthy development of the sector with improved competitiveness and more opening up. The regulator will strengthen the sector's role in supporting the real economy, he said.
These words have been repeated several times in recent months following a crackdown by the CIRC on insurers that have used leveraged money to buy shares in listed companies in the quest for short-term profits or controlling stakes, in moves which triggered sharp volatility and market concerns late last year.
Managing risk has become an even greater priority after President Xi Jinping said at a national financial work conference in mid-July that “failing to detect financial risk in time is a breach of duty; spotting risk but without addressing it is a dereliction of duty”.