Stricter insurance regulation in China

China Banking and Insurance Regulatory Commission (CBRIC) has released a draft law on insurance in China on 3 September 2021.

The proposed new legislation aims to improve regulation to prevent financial risks in a country struggling to recover from the Covid-19 pandemic.

The proposed amendments include the establishment of a clear and transparent shareholding structure by insurers. The introduction of warning mechanisms for potential contagion risks is also suggested. Chinese insurers are also required to improve the supervision of their subsidiaries operating in other non-insurance sectors.