People's Republic of China Financial Sector Assessment Program : Insurance Core Principles

International Monetary Fund ; World Bank

Washington, DC

关键词: INSURANCE;    MACROPRUDENTIAL SETTING;    SUPERVISION;   

RP-ID  :  121860

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The Chinese insurance sector isexperiencing rapid growth, posing particular challenges toeffective supervision. The sector has been growing by over20 percent a year and there are ambitious government targetsfor further development. Many individual, often newer,companies are growing at rates far in excess of the average.New entrants, products and distribution channels, combinedwith the liberalization of pricing, have increasedcompetition. At the same time, slower economic growth andreduced investment returns are exposing many establishedlife insurers to the risk of loss due to the rising value oftheir liabilities. Many non-life companies are moving intonew lines of business as margins in established lines erode.While their customers continue to benefit from a dynamicmarket, there are risks to insurance companies’ businessmodels, performance and to solvency as well as risks ofmisconduct in the treatment of insurance customers. Thereare particular challenges for insurance supervisors toremain abreast of developing risks, while continuing tostrengthen the regulatory and supervisory system for thelonger term. The China Insurance Regulatory Commission(CIRC) has been undertaking far-reaching reforms andmodernization since the 2011 FSAP. It has focused its workon improving corporate governance, enforcing sound marketconduct and reshaping the solvency standards into a modern,risk-based approach. The China-Risk Oriented SolvencyStandards (C-ROSS) draw on international practices andexperience in the Chinese market to define solvencyrequirements that generally reflect risk as well asrewarding sound risk management. By linking the framework toan in-depth assessment of risk management, C-ROSS has alsoequipped CIRC with a strengthened overall supervisoryframework for solvency risk. As a result, CIRC has feltconfident to relax or remove less risk-based requirementssuch as new product (and reinsurance contract) approval aswell as detailed limits on insurers’ investments. Inparallel with regulatory changes, it has been working toreform and develop the insurance market, liberalizingpricing controls and accommodating the development of newproducts, although restrictions remain on the access offoreign insurers, especially in life insurance.