China’s insurance sector to face more risks, warns senior official

Second-highest regulatory official speaks out about the industry’s state after corruption scandal rocks organization

China’s insurance sector to face more risks, warns senior official

Insurance News

By Gabriel Olano

The second-highest official of China’s insurance regulatory body has said that the country’s insurance industry is exposed to several compounded risks, following a corruption investigation against its chief.

Chen Wenhui, vice chairman of China Insurance Regulatory Commission (CIRC), revealed that the insurance sector is facing four major risks.

Solvency risks, liquidity pressures, poor corporate governance, and external issues such as uncertainties of global politics and economy are at the doorstep of the Chinese insurance industry, Chen said.

Want the latest insurance industry news first? Sign up for our completely free newsletter service now.

The commission has vowed that it will further tighten regulations to avoid a systemic crisis, reports Xinhua.

In a statement, the CIRC executive said that the industry should always be alert against financial risks, support supply-side structural reform and help promote the development of the real economy.

The regulator’s statement came after the commission’s chairman, Xiang Junbo, was revealed to be under investigation for corruption allegations linked to high-risk and overly aggressive business practices by some insurance players.

Related stories:
Crackdowns may intensify after chief insurance regulator’s corruption probe
Regulator to scrutinize insurers’ bond transactions
China may need a super watchdog for finance

Keep up with the latest news and events

Join our mailing list, it’s free!