The China Banking and Insurance Regulatory Commission published a notice strengthening regulatory requirements for property insurers’ non-motor insurance business, targeting irregular practices and irrational competition and aiming to protect insurance consumers and improve business quality. The notice sets out six areas of focus. It calls for changes to performance assessment mechanisms to shift management emphasis from scale and growth speed to quality and efficiency; tighter product development and usage controls, including strengthened premium rate management and strict use of filed products in line with their filing; and stricter premium income and financial management supported by enhanced information systems and internal controls. It also reinforces market conduct supervision, including regulatory measures or administrative penalties for conduct such as failing to use filed terms and rates as required or preparing or providing false reports, statements or documents, and promotes improved underwriting and claims services and a larger role for industry organisations in advancing standardisation. The regulator will guide its local offices and property insurers in implementing the requirements to support effective on-the-ground application of the new supervisory approach.

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