China’s insurance regulator will be closely inspecting the bond transactions of its supervised insurers, imposing a more stringent assessment regime that aims to reduce risk and discourage use of policy premiums in speculation.
The South China Morning Post reports that the China Insurance Regulatory Commission (CIRC) has required insurers to report their bond transactions prior to March 28, as the regulator aims to “have a full assessment of risks involving insurance companies’ bonds transactions,” according to a regulatory notice.
“The regulator is showing a tendency for tighter scrutiny as they are increasingly alert to risks,” Guo Zhenhua, head of the insurance department at Shanghai University of International Business & Economics, told SCMP.
