Asian News - China: Regulator identifying "too-big-to-fail" domestic insurers
Source: Asia Insurance Review | Aug 2016
China is expected to finalise a list of “too-big-to-fail” insurers this year as CIRC tightens scrutiny over major players in a bid to safeguard financial stability, market observers say.
CIRC has asked 16 major insurers, including People’s Insurance Company (Group) of China, China Life Insurance, Ping An Insurance (Group) and Anbang Insurance Group, to provide data as part of its plan to identify domestic systematically important insurers (D-SII), or companies deemed “too big to fail” due to their potential impact on the financial system and society, reported the South China Morning Post.
Domestic insurers on the list will face additional regulatory burdens including tighter capital scrutiny, enhanced groupwide supervision, and recovery and resolution planning requirements.
The D-SII are expected to be selected from the 16 major players shortlisted, observers said.
The programme is similar to the global systematically important insurers (G-SII) scheme initiated by the Financial Stability Board, an international agency endorsed by the Group of 20 member nations to increase global financial stability.