China's National Financial Regulatory Administration issued the Measures for the Consolidated Supervision and Management of Insurance Groups, revising the former China Insurance Regulatory Commission’s consolidated supervision guidelines to strengthen group-wide oversight and risk prevention. The Measures place greater responsibility on insurance groups for consolidated management and require the consolidation scope to be determined under a substance-over-form principle. They also tighten expectations on internal governance, including focusing on core business, strengthening audit oversight, and periodically assessing member companies, and they call for enhanced enterprise-wide risk management aimed at group-specific risks such as risk concentration, contagion and hidden risks. Additional requirements cover stronger controls over intragroup transactions and the establishment of risk isolation mechanisms, alongside strengthened asset-liability linkage management to prevent double counting of capital and reduce excessive leverage risk. The regulator said it will move forward with implementation of the Measures.
China Banking and Insurance Regulatory Commission 2025-04-11
China's National Financial Regulatory Administration issues revised consolidated supervision measures for insurance groups
China's National Financial Regulatory Administration issued new Measures for the Consolidated Supervision and Management of Insurance Groups, revising guidelines to enhance oversight and risk prevention. The Measures emphasize consolidated management, internal governance, and enterprise-wide risk management, addressing risks like concentration and contagion. They also mandate stronger controls over intragroup transactions and asset-liability management to mitigate leverage risk.