CIRC may revise rules for fund

China's top insurance regulator is considering revising the rules for the country's insurance security fund, which will allow the fund to provide necessary liquidity support to insurers in case of crisis.

Industry experts said the move highlighted the regulatory intention to boost the role of the insurance security fund in preventing industry risks as some insurers may be exposed to liquidity problems as the authorities have substantially tightened regulations to curb systemic financial risks.

The revised rules will require insurers to submit a certain proportion of capital to the fund based on the evaluation of their risk management capability, meaning that some insurers will likely face higher capital requirement if they have poorer risk management performance, business newspaper Shanghai Securities News reported on Tuesday.