China's National Financial Regulatory Administration has proposed revisions to the Insurance Law that would close regulatory gaps and strengthen institutional, conduct, functional, look-through and continuous supervision. The draft would extend oversight to insurers’ shareholders and actual controllers, reinforce prudential requirements and improve the framework for resolving risks and facilitating market exits. The prudential changes cover corporate governance, risk management, internal controls, solvency, asset-liability management and the use of funds. The draft would also strengthen insurance consumer protection and contract rules, clarify prohibited conduct, broaden the scope of legal liability and increase fines for violations.