The CBIRC's changes to the solvency management of China's insurance sector are a positive step, particularly in the reinforcement of balance sheet strength and the development of enterprise risk management, says AM Best. The changes will go into effect 1 March.
Pandemic outbreak (#1 with 36% responses) rises six spots to be the top business risk in China, the epicentre of COVID-19, in the 10th Allianz Risk Barometer 2021 released this month.
The CBIRC has updated its solvency regulations for insurers with the revised rules to take effect from 1 March 2021.
Regulators still support insurers and banks cooperating with Internet-based platforms, despite recent anti-trust measures taken in the FinTech sector, reported Reuters quoting Mr Liang Tao, a CBIRC vice chairman.
China's leading on-demand food delivery firm Meituan has announced that it is to shut down its mutual aid platform, which offers financial aid for medical treatment by getting members to club together and share expenses equally, as regulators toughen their stance on the overextension of Internet-based giants into peripheral fields that lack regulation.
The five major A-share listed insurance companies in China have posted an aggregate premium income of CNY2.49tn ($385bn) in 2020, an increase of 3.65% compared to 2019.
Pandemic outbreak continues to appear on the Top 10 risks facing China, jumping to become the No. 1 risk this from its seventh position in 2020, according to the Allianz Risk Barometer 2021.
The general manager of Ant Group's insurance business department has quit to work for traditional insurer Sunshine Property and Casualty Insurance amid growing uncertainty over the future of the firm's online insurance operations, Shanghai Securities News has reported.
Several polls have shown one main reason that couples in China are reluctant to have more than one child is the high cost of raising children, says Yuan Xin, a professor at the Institute of Population and Development of Nankai University.
The life insurance supervision department of the CBIRC has established a new "negative list" for life insurance products in order to further regulate the product development and management at life insurance companies, curb life insurance product risks, and protect the interests of consumers.