The China Banking and Insurance Regulatory Commission has issued supervisory guidance on concentration risk for insurance groups, setting out standards intended to strengthen group-wide concentration risk governance, measurement and controls. The guidance is organised into five chapters with 28 articles, covering general provisions, the concentration risk management framework, policies and procedures, management information systems, and reporting and disclosure. It clarifies core principles and standardises management processes, promotes the use of multi-dimensional indicators and limit systems, and strengthens disclosure and reporting arrangements, drawing on international supervisory practices and aiming to support prudent operations and prevent systemic risk. The regulator said it will focus next on driving effective implementation of the guidance.
China Banking and Insurance Regulatory Commission 2025-02-08
China Banking and Insurance Regulatory Commission issues 28-article guidance on concentration risk management for insurance groups
The China Banking and Insurance Regulatory Commission issued guidance on concentration risk for insurance groups to enhance governance, measurement, and controls. It includes standards on risk management frameworks, policies, procedures, and reporting, drawing on international practices to support prudent operations and prevent systemic risk. The regulator will prioritize effective implementation of these measures.