China's National Financial Regulatory Administration issues revised consolidated supervision measures for insurance groups

China's National Financial Regulatory Administration has issued the Measures for the Consolidated Supervision and Administration of Insurance Groups, revising the former China Insurance Regulatory Commission guidance to strengthen group-wide supervision and limit cross-regional, cross-market and cross-border risk transmission. The update sets more explicit expectations for insurance groups’ consolidated risk management and control capabilities. The measures require groups to focus on their core business, simplify shareholding layers and avoid disorderly expansion, and determine the consolidated management perimeter on a substance-over-form basis, primarily grounded in control while also considering risk relevance. They also clarify responsibilities across group and subsidiary levels, place ultimate accountability for consolidated management with the group company board, and strengthen audit oversight and governance constraints. Risk-focused provisions cover comprehensive risk management, the establishment of concentration risk indicator systems, tighter management of internal transactions, and strengthened risk isolation mechanisms, supported by monitoring and assessment frameworks spanning member companies and risk types, response planning, and asset-liability linkage management to prevent double counting of capital and reduce excessive leverage.