The China Banking and Insurance Regulatory Commission issued a notice adjusting risk factors for certain insurance company activities under its solvency supervision framework, while maintaining a “risk bottom line”. The changes are positioned to better reflect insurance funds’ role as long-term capital and to strengthen support for the real economy. The notice adjusts the risk factors applied to insurers’ investments in certain equities and revises risk factors for export credit insurance business, including overseas investment insurance business of the China Export & Credit Insurance Corporation, with the stated aim of encouraging greater support for foreign trade enterprises and alignment with national strategy. Next, the regulator will guide insurers in implementing the revised factors, improving long-term investment management capability and solvency management, and ensuring solvency data are true, accurate and complete.
China Banking and Insurance Regulatory Commission 2025-12-05
China Banking and Insurance Regulatory Commission adjusts insurers’ solvency risk factors for equity investments and export credit insurance business
The China Banking and Insurance Regulatory Commission has adjusted risk factors for insurance company activities to better reflect insurance funds as long-term capital. The changes aim to enhance support for the real economy and align with national strategy by revising risk factors for insurers' equity investments and export credit insurance. The regulator will guide insurers in implementing these revisions to improve investment management and ensure accurate solvency data.