The CBIRC's new rules to regulate insurers' investments in trust products will benefit the industry, but are unlikely to dramatically increase insurers' appetite for the products, Fitch Ratings says.
The Insurance Asset Management Association of China (IAMAC) has evaluated the comprehensive quality of major credit rating agencies in the country, in order to provide a service to insurance institutional investors.
Asian life insurance companies run up great risks in their search for income through their sizeable "naked" bond positions, setting them up for pain when the greenback falls in value relative to their currencies.
Insurers in China are cutting their investments in debt-to-equity plans that were heavily promoted by the regulators last year in a bid to increase the flow of insurance funds into the real economy.
The CBIRC will give insurance companies more investment autonomy, Mr Liang Tao, CBIRC vice chairman, said at the press conference yesterday.
China's banking and insurance regulator has issued detailed rules to regulate insurance investments in trust products, reported Reuters.
The Insurance Commission (IC) is now allowing insurance firms and pre-need companies to invest in real estate investment trusts (REIT), widening their investment channels in a bid to increase returns.
The China Insurance Investment Fund has drawn up plans for its second phase of funding and is currently seeking feedback from insurance companies on them.
Designed to protect the interests of consumers primarily, Malaysia's new requirements for investment-linked product (ILP) insurance policies will be implemented on 1 July 2019.
Scores of AXA Hong Kong customers are demanding compensation of millions of dollars from the insurer following the collapse of a high-risk investment fund sold on its platform. The unhappiness had simmered since the middle of last year but boiled over at the end of last month.