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Supervision Strengthened on Solvency Capacity of Insurance Companies
China will further intensify its supervisions on solvency capacities of insurance companies, said Ma Yongwei, chairman of China Insurance Regulatory Commission (CIRC) recently in an interview with CCTV reporters.
Ma revealed that CIRC has set up its branches in 30 provinces, cities and autonomous regions, and they will be inaugurated before the Spring Festival.
Ma said that we should adjust our model of supervision by both the market and by laying hands on the solvency capacity to meet the needs of the market.
According to Ma, the newly-formulated "Regulations on Minimum Solvency Capacity and Supervision Index Management of Insurance Companies" has been put into trial practice. In accordance with the regulation, CIRC will carry out a unified supervision on all domestic insurance companies including joint ventures and foreign-invested insurance companies in China. For those who fail to meet the minimum solvency standard, CIRC will take various measures for punishment including subjecting the insurance company to a strict supervision and inspection, and even with order given to suspend the opening of a new office until it is being taken over.
By PD Online staff member Li Yan
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