On 23rd April 2017, the China Insurance Regulatory Commission (CIRC) issued a notice highlighting nine key areas of insurance sector risk-prevention concerns:
- Liquidity
- Funding Operations
- Strategy
- New Lines of Business
- Outsourcing
- Herd Mentality
- Lack of Transparency
- Capital Deficiency
- Reputation
The Notice goes on to set out a number of specific requirements for insurers in respect of each of 1-9 above. The Notice reminds Officers & Directors of insurance companies that they, personally, will be pursued and prosecuted if their respective obligations regarding risk prevention are not duly performed.
CIRC – Risk Prevention Notice (Notice)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.