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CIRC sets caps on insurance investment

By Hu Yuanyuan (chinadaily.com.cn)
Updated: 2010-03-24 18:32
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China's insurance regulator on Wednesday set a 10 percent and 30 percent ceiling for the country's insurance groups and their subsidiaries' investment into non-financial sectors and non-insurance financial industries respectively, a move to prevent cross-sector risk transfer.

Related readings:
CIRC sets caps on insurance investment CIRC may raise insurers' minimum capital standard
CIRC sets caps on insurance investment CIRC stresses supervision on insurance investment

Cai Jipu, deputy director of the general office of the China Insurance Regulatory Commission (CIRC), said the operational risk of group companies will be one of the key areas under the regulator's supervision this year.

"We will work out more detailed rules on the group company's establishment, investment, risk management and consolidated supervision," Cai said.

Currently, China has seven insurance group companies and one insurance holding company. By the end of 2009, the combined total assets of these eight companies stood at 3190 billion yuan, and their premium income totaled 841.9 billion yuan, accounting for 75 percent of the whole industry.

 

 
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