Insurance Insight: CIRC to tighten capital adequacy supervision

11 April 2012

China's Insurance Regulatory Commission (CIRC) is to bolster its supervision of the insurance industry over the next few years to ensure that insurers are able to pay claims.

As reported by the China Securities Journal, new mechanisms will strengthen insurers' capital adequacy supervision, risk management and information disclosure to ensure they retain good financial conditions and can pay claims on time.

While details are still being discussed, the target was stated in a document issued recently by the CIRC.

The document made it clear that China will take three to five years to build up new supervisory mechanisms on insurers' compensatory capabilities, Insurance Insight understands.

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