The China Insurance Regulatory Commission (CIRC), China’s industry regulator, has ordered insurance firms in the country to strengthen disclosure on transactions.
In a notice posted on its website, the CIRC said Chinese insurers should strengthen disclosures on transactions in response to new investment strategies they have developed.
“In recent years, as the insurance market has developed quickly, the avenues for different uses of funds have continuously expanded,” the CIRC said.
The commission said Chinese insurers need to increase the scope and standard of disclosures and strengthen legal responsibility.
The CIRC stressed that the scale of related party transactions, information disclosures, and risk controls are all worth of attention.
The insurance industry regulator earlier decided to ease regulation governing insurers’ investment in infrastructure projects.
The CIRC said insurance companies will no longer be required to secure regulatory approval if they decide to pour their investment in infrastructure.
On top of this, CIRC has also widened insurers’ scope of investment in the field.
The move to relax the rules was primarily aimed at helping insurers allocate their assets better taking into account an environment that is not giving a high yield.
CIRC believes the measure would support and stabilize China’s economy. – BusinessNewsAsia.com